Ontario’s provincial gas tax is 9 cents per litre, down from 14.7 cents before July 1, 2022. What began as a temporary cut has been extended four times, and the 2025 Ontario Budget introduced legislation to make the 9-cent rate permanent under the Gasoline Tax Act.1Government of Ontario. 2025 Ontario Budget – Keeping Costs Down You don’t need to apply for anything. The lower rate is already built into the price you see at the pump.
The Current Rate and What It Replaced
Under the Gasoline Tax Act, Ontario charges a per-litre tax on gasoline sold at retail. The pre-2022 rate on unleaded gasoline was 14.7 cents per litre. On July 1, 2022, the province cut that by 5.7 cents, bringing it to 9 cents.2Government of Canada. Gasoline Tax Rates
On a 50-litre fill-up, the provincial tax portion dropped from about $7.35 to $4.50. The 2025 Ontario Budget estimated that the gasoline and fuel tax cuts together have delivered roughly $1.7 billion in total relief to Ontario families and businesses since the program started, and it projected average household savings of about $115 per year going forward under the permanent rate.1Government of Ontario. 2025 Ontario Budget – Keeping Costs Down
Diesel Sits at the Same Rate
Diesel and other clear fuels are taxed separately under Ontario’s Fuel Tax Act, which historically charged 14.3 cents per litre.3Government of Ontario. Ontario Code – Fuel Tax Act The July 2022 package cut diesel by 5.3 cents, matching gasoline at 9 cents per litre.1Government of Ontario. 2025 Ontario Budget – Keeping Costs Down The parallel cuts were designed so both personal and commercial drivers saw comparable relief.
From Temporary Cut to Permanent Rate
The original 2022 measure was time-limited. The government extended it four times, with the last extension running through June 30, 2025.1Government of Ontario. 2025 Ontario Budget – Keeping Costs Down
Instead of a fifth extension, the 2025 Ontario Budget proposed amendments to both the Gasoline Tax Act and the Fuel Tax Act to lock the 9-cent-per-litre rate in as the new baseline for gasoline and diesel.1Government of Ontario. 2025 Ontario Budget – Keeping Costs Down Calling it a “tax holiday” is increasingly inaccurate. The rate is no longer scheduled to snap back to pre-2022 levels.
Federal Changes Stacking on Top
Two federal changes are affecting what Ontario drivers pay in addition to the provincial rate. The federal consumer carbon charge, which had been adding several cents per litre, was cancelled on April 1, 2025.4Government of Canada. Secretary of State Zerucelli Highlights Suspension of the Federal Fuel Excise Tax on Gasoline and Diesel
Separately, the federal fuel excise tax is suspended from April 20, 2026 through Labour Day, September 7, 2026. Normally the federal excise tax adds 10 cents per litre to gasoline and 4 cents per litre to diesel.5Government of Canada. Fuel Consumption Levies in Canada During the suspension, both drop to zero.6Government of Canada. Temporarily Suspending the Federal Fuel Excise Tax The federal rate returns on September 8, 2026.
So through the summer of 2026, an Ontario driver filling up with unleaded gasoline pays 9 cents per litre in provincial tax and zero in federal excise tax. When the federal suspension ends in September, the 10-cent federal charge comes back. The 9-cent provincial rate stays.
How the Savings Reach You
There is no form to file and no rebate to claim. Fuel distributors and retailers adjust their pricing to reflect the current provincial rate, so the 9-cent tax is already baked into the price per litre at every station. This is worth flagging because Ontario runs other tax relief programs that do require applications. The fuel tax cut is not one of them.
Propane Is No Longer Taxed
Ontario eliminated the provincial tax on propane entirely as of July 1, 2025. Propane had previously been taxed under the Gasoline Tax Act. Wholesalers, retailers, importers, and exporters who overpaid propane tax before July 1, 2025 can apply for refunds, with a deadline of July 1, 2027 to submit claims.7Government of Ontario. Gasoline Tax For ordinary propane customers, the elimination shows up in the price the same way the gasoline cut does: automatically, at purchase.