Key Takeaways:
- The province’s gas tax cut went into effect on Friday, giving drivers in Ontario some respite from the region’s record-breaking gas prices.
- Analysts predict that when the measure expires in December and prices are expected to rise once more before Christmas, Ford may be forced to make a difficult decision.
- The rising price of gas, a significant factor in inflation, is correlated with an increase in oil demand as the economy recovers from the COVID-19 epidemic.
On Friday, the province’s gas tax drop went into effect, providing some relief to Ontario drivers from the province’s record-breaking petrol prices.
Until the year-end, the Ontario government has reduced the gas tax by 5.7 cents per liter; however, Premier Doug Ford said he would explore an extension if inflation stays high.
Gas prices in the Toronto area fell by about 11 cents overnight to $1.93, which was only partially due to the tax cut, and drivers noticed the effect on Friday.
Matthew Johnston remarked as he topped off a cargo vehicle at a gas station in the heart of Toronto, “Every dollar matters.” This will be somewhat helpful.
Since the start of the year, gas prices in Toronto have increased by over 40%, hitting a record high of $2.15 a liter in early June before settling around $2.00.
Also read: Ford promises to stop ‘unfair’ insurance rates based on zip codes
Johnston, who owns a start-up catering company and works at a winery, said that the rising cost of gas combined with inflation has made it necessary for him to reduce his expenditure.
“I’ve been unable to leave the house or engage in any activities. Sincerely, all of it has been spent on gas, rent, and other living expenses, “explained he.
For his almost daily drive to the Niagara region, he often puts $60 in the gas tank. He decided to try a $40 fill-up on Friday.
While it is in force, the tax decrease is anticipated to cost the province $645 million. According to analysts, Ford may have to make a difficult choice in December when the measure expires, and prices are set to increase once more before Christmas.
In addition, until December 31, the legislation passed this spring will reduce the gasoline tax, including diesel, by 5.3 cents per liter.
As he loaded his car with gas, Hermain Kazmi referred to the tax cut as a step in the right direction. He claimed that recent high petrol costs had forced him to use more public transportation but that if prices dropped, he anticipated returning to his prior driving habits.
Kazmi expressed “100%” support for the government extending the tax break beyond 2023 and even expressed the hope that it would result in additional financial assistance.
“I don’t believe a 10-cent decrease would have a significant effect. It’s a good chance, but I believe it needs to be scaled back based on how much inflation there is and how salaries have not increased in line with inflation, “added he.
A major contributor to inflation, the rising cost of gas, is related to a rise in oil need as the economy recovers from the COVID-19 pandemic. A global supply shortage that was worsened partly by Russia’s invasion of Ukraine has also made things worse.
On his trip to a park outside of Toronto, Ali Avali refueled his SUV while his dog, an Alaskan Malamute, was perched in the backseat.
It’s only because of this person that I drive. I take him for a little run through the countryside,” he stated.
Alavi stated that after the SUV’s loan is repaid, he intends to move to an electric car. He argued that if gas costs rose more, more people would be persuaded to switch, and he indicated he opposed a reduction in the gas tax.
I don’t get angry when I see petrol costs rising,” he stated.
Source: CTV news
Get Canada and Ontario’s top News, Market news, and other worldwide news only on Ontario Independent
