Ontario Government Cuts Commuter Costs by Permanently Eliminating Gas Tax and Highway 407 East Tolls

May 26, 2025

The provincial government committed to removing the gas tax and eliminating tolls on Highway 407 East to reduce commuter costs and keep money in Ontarians’ pockets.

NEWS: The Ontario government is committed to easing living costs for Dufferin-Caledon residents by announcing the permanent gas tax cut. The provincial government’s measures are set to significantly impact household budgets. With the permanent reduction of the gasoline fuel tax rate by 9 cents per litre, Ontario households can expect to save an average of $115 per year. Additionally, starting June 1st, 2025, tolls will be removed from the provincially owned section of Highway 207 East, from Brock Road to Highway 35/115, potentially saving daily commuters up to $7,200 annually.

“The measures announced today (May 13th, 2025) will not only help to reduce traffic and commute times, but they will help put money back in the pockets of hardworking families at a time when it matters most. This is another step in our work to protect Ontario by building a more efficient, affordable and accessible transportation network,” said Parbmeet Sarkaria, Minister of Transportation.

This initiative also adds to a series of cost-saving moves, including eliminating license plate renewal fees, stickers and freezing fees for driver’s licenses and Ontario Photo Cards. Altogether, these actions have saved individuals and families over $1.8 billion in the past year.

With these steps, the Ontario government reaffirms its unwavering commitment to making transportation more affordable, efficient and accessible, providing crucial support to hardworking families and individuals.

Quick Facts:

  • Gas Tax Cut: Ontario is permanently cutting the gasoline and fuel tax by 9 cents per litre, saving the average household ~ $115 annually.
  • Toll Removal: Tolls will be removed from Highway 407 East (Brock Rd to Hwy. 35/115) effective June 1, 2025, saving commuters ~ $7,200 annually.
  • No New Tolls: The government has passed legislation banning new tolls on public roads in Ontario.
  • Economic Context: These actions are a response to rising living costs and economic uncertainty due to U.S. tariffs on essential goods.

Learn More: Ontario Permanently Cutting the Gas Tax and Taking Tolls Off Highway 407 East | Ontario Newsroom