It appears as if a bit of relief is on the way for those who use Highway 407.
The Ontario government is moving to permanently cut the gas and fuel tax and eliminate tolls on Highway 407 East, aiming to ease costs for families and businesses amid ongoing economic pressures.
As part of the upcoming 2025 Budget, the province is introducing legislation that would lock in the current nine-cent-per-litre tax rate on gasoline and fuel, a move expected to save households an average of $115 annually. The cut builds on temporary relief measures first introduced in 2022, which have saved drivers $1.7 billion to date.
Premier Doug Ford said the move is about delivering long-term affordability. “That’s why we’re cutting the gas tax permanently and taking tolls off Highway 407 East,” Ford said. “We’ll always keep looking for ways to put more money back into the pockets of Ontario families.”
The government is also proposing to permanently remove tolls from the provincially owned section of Highway 407 East, from Brock Road to Highway 35/115, effective June 1, 2025. Officials estimate daily commuters could save up to $7,200 annually.
The initiative follows the earlier removal of tolls from Highways 412 and 418 and supports recent legislation banning any new road tolls on public highways in Ontario.
“These measures will reduce traffic, shorten commute times and lower costs for Ontarians,” said Transportation Minister Prabmeet Sarkaria. “We’re building a more affordable and accessible transportation network.”
Finance Minister Peter Bethlenfalvy added that the permanent gas tax cut is part of broader efforts to help Ontarians manage inflation and economic uncertainty tied to international tariffs. “We are continuing to take action to ease the pressure,” he said.
The government says it has saved individuals and families over $1.8 billion in the past year through cuts and freezes on gas taxes, driver’s licence fees, and vehicle registration fees.
The full 2025 Budget, outlining the province’s economic strategy and further affordability measures, is set to be released on May 15th.
