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Ontario gives $120M boost to municipalities’ gas tax funding to make up for low fuel sales

A gas pump is shown at a filling station in Montreal, The prices of gas in N.S. jumped by more than 10 cents a litre on Friday morning. THE CANADIAN PRESS/Graham Hughes. Graham Hughes / The Canadian Press

TORONTO — Ontario municipalities with public transit systems are receiving an additional $120 million in funding this year.

The Ontario government provides those communities with two cents per litre of the provincial gas tax revenue it collects.

But this year, the government is topping up the funding with the additional cash to make up for reduced gas sales during the COVID-19 pandemic.

Read more: Ontario to begin lifting COVID-19 restrictions on Jan. 31

The 107 municipalities will be receiving more than $375 million in total.

Transportation Minister Caroline Mulroney says the gas tax funding allows municipalities to operate and expand public transit systems that people rely on for work and essential trips.

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About half of the funding goes to the city of Toronto.

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