Ford gasoline tax cut may be camouflaged by rise in crude prices, say experts
Ontario Progressive Conservative leader Doug Ford’s election promise to lower gas taxes might not go very far, considering the price of crude oil — the most crucial element in determining prices at the pump — is marching steadily higher, industry experts say.
Ford promised Wednesday to shave 10 cents per litre off gasoline taxes if elected premier next month — 5.7 cents in provincial taxes and another 4.3 cent from his pledge to eliminate the province’s cap-and-trade system.
A resulting reduction in the harmonized sales tax (HST) would shave another 1.3 cents per litre, including a small portion that would be lost by Ottawa.
Gas prices across the country and in parts of the United States have been hovering near record highs, with little relief in sight as the benchmark price of oil closes in on US$72 a barrel.