407 East Goes Toll-Free: Ford Government Confirms Permanent Removal in 2025 Budget

In a move expected to impact millions of commuters, the Ontario government is making its temporary gas tax cut permanent and eliminating tolls on a major provincial highway. Premier Doug Ford confirmed Tuesday that both measures will be officially included in Thursday’s provincial budget.

Originally introduced in July 2022, the provincial gas tax cut reduced the tax on gasoline by 5.7 cents per litre and on diesel by 5.3 cents. Initially framed as a short-term measure to combat soaring fuel prices, the cuts have been extended several times. The upcoming 2025 budget will enshrine the tax reduction into law, fixing the provincial fuel tax at nine cents per litre permanently.

“We made a promise to put more money back into people’s pockets—and we’re keeping it,” Ford stated during Tuesday’s announcement, characterizing the move as direct financial relief for working families across the province.

In addition to the fuel tax move, the government is permanently eliminating tolls on the provincially owned portion of Highway 407 East. The toll-free section runs from Pickering to Clarington, covering a key stretch of roadway used by daily commuters and commercial traffic in the eastern Greater Toronto Area.

The decision fulfills a campaign promise Ford made during the last provincial election and is aimed at improving affordability and mobility in the region. However, critics argue it doesn’t go far enough.

While the Progressive Conservatives say the changes will provide meaningful relief, opposition leaders remain skeptical. Ontario NDP leader Marit Stiles has previously vowed to scrap tolls on the entire Highway 407, not just the eastern segment. Meanwhile, the Green Party continues to advocate for broader toll subsidies to ease transportation costs.

A 2021 Ministry of Transportation report estimated the 407 East tolls would have generated $72 million in revenue for 2024-25, a sum the province is now forgoing in favor of public relief.