CPA Public Affairs
April 2022

NEW – ON: Auto propane not included in proposed legislation that would cut taxes on fuels

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On April 4, 2022, the Ontario government introduced legislation that would cut taxes on gasoline and fuel for six months between July 1 and December 31, 2022. Bill 111, An Act to amend the Fuel Tax Act and the Gasoline Tax Act with respect to a temporary reduction to the tax payable on certain clear fuels and on gasoline did not include auto propane. The bill received its third reading in the House on April 14, 2022.

The gas tax rate for unleaded and ethanol-blended gasoline would be cut from 14.7 cents per litre to 9 cents per litre, a 5.7 cents per litre reduction. The fuel tax rate for clear and blended diesel, clear kerosene and biodiesel would be reduced from 14.3 cents per litre to 9 cents per litre, a cut of 5.3 cents per litre.

On the day of this announcement, CPA Director of Government Relations for Ontario, Marcelline Riddell, contacted the Ontario Finance Ministry to clarify if the proposed reductions apply to the current 4.3 cents per litre charged for auto propane. Finance Ministry staff confirmed that propane was not included. 

The CPA has called on the Ontario government to reduce, and eventually eliminate, the tax on auto propane repeatedly over the past three years. Most recently, this request was among the CPA’s top three proposals in its 2022 pre-budget consultation submission to the finance minister.

Given propane’s low-carbon emission properties, the CPA has re-engaged with the offices of the finance and energy ministers to schedule meetings to discuss the benefits of including propane in economic and energy policies and programs, like this latest fuel tax cut.


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