Doug Ford making gas tax cut permanent, ending tolls on eastern section of Highway 407

As of June 1, the levies, which can be up to $20, will be lifted on the 43-kilometre portion of Highway 407 from Brock Road in Pickering east to Highway 35/115 north of Clarington, which will cost the treasury around $72 million annually.

But tolls that can cost $86 depending on the time of day will remain on the privately operated 108-kilometre section of Highway 407 from the Queen Elizabeth Way in Burlington to Brock Road.

In Thursday’s budget, Bethlenfalvy will also finally make permanent the temporary 5.7 cents a litre reduction in the gas tax he introduced in 2022 and has extended annually since. The tax will remain at 9 cents a litre, down from 14.7 cents three years ago.

“I know that families and business owners are worried about rising costs, especially as U.S. tariffs threaten to raise the price of everyday essentials,” Ford told reporters in Pickering Tuesday.

“That’s why we’re cutting the gas tax permanently and taking tolls off Highway 407 East, and that’s why we’ll always keep looking for ways to put more money back into the pockets of Ontario families,” he said.

“Once the legislation is passed, there will not be one single publicly owned tolled highway left in Ontario — and that’s thanks to our government’s ban on new road tolls in the province.”

Ford has frequently said it was a “big mistake” for former Tory premier Mike Harris to sign a 99-year lease with a private consortium to operate Highway 407 for $3.1 billion in 1999.

It would cost taxpayers an estimated $35 billion to end that contract and return the highway to public hands.

To tackle gridlock, the premier has commissioned a feasibility study to build a Mississauga-Scarborough tunnel under Highway 401 that critics warn could cost $120 billion and disrupt traffic for years.

“We’re looking at every option out there but the 407 — all 400 series highways — will be maxed out in the next 10 years. The tunnel, it’s going to be a great project,” said Ford, insisting it would be “relatively easy compared to going underneath buildings downtown and buying up houses” as is now happening with the Ontario Line subway in Toronto.

Bethlenfalvy, meanwhile, noted the average family will save $115 a year in gas taxes with his changes. 

“To help Ontarians cope with the high cost of living and the impacts of the economic uncertainty caused by tariffs, we are continuing to take action to ease the pressure and do more to help lower costs for households,” said the treasurer, stressing the government is mindful that people are concerned about their pocketbooks.

Durham Region Chair John Henry said the moves are “great news” for commuters.

“It will ease pressures during a time of reduced affordability by bringing down the cost of living, improving mobility, fighting congestion on our highways and supporting local and provincial economic growth,” said Henry.

At Queen’s Park, NDP Leader Marit Stiles said while removing the tolls was “a good step in the right direction,” more can be done.

“I would point out it’s only about 30 per cent of the 407 … but it’s not as far as we need to go,” said Stiles.

“The government needs to take the next step to push for the removal of all tolls, to be able to move at least the trucks onto the 407 and reduce some of that congestion” on Highway 401 to the south, she said.

With files from Rob Ferguson