Ontario’s gas tax program to benefit transit services in northern Ontario

The Ontario Government is providing money to northern Ontario municipalities to improve public transit through its gas tax program.

The government announced Thursday morning North Bay will receive $914,000, Sault Ste. Marie will see over $1.1 million, Timmins will get over $620,000 and Greater Sudbury will receive more than $2.9 million.

“Our government knows that municipal transit systems are essential to the success of our local communities, connecting people and families to jobs, housing and wherever they need to go,” said Nipissing Vic Fedeli, in a news release.

Funding for the gas tax program is determined by the number of litres of gasoline sold in the province during the previous year. Municipalities that support public transit services in their community receive two cents per litre of provincial gas tax revenue collected.

To make up for reduced gas sales due to ongoing recovery from the COVID-19 pandemic, this year’s gas tax program includes supplemental funding of $80 million to help ensure municipalities can continue to support their transit systems.

“Each year, the provincial gas tax program provides the City of North Bay with funding that is critical to maintaining and improving public transit in our community,” said North Bay Mayor Peter Chirico, following the announcement.

“I would like to thank MPP Fedeli and the Ontario Government for the ongoing investment and support.”

Gas tax funding can be used to extend service hours, buy transit vehicles, add routes, improve accessibility, or upgrade local infrastructure.

“Under Premier Ford’s leadership, we continue to step up to the plate to provide the funding municipalities need to ensure transit remains a safe and reliable option in communities across Ontario,” said Fedeli.

The 2022-23 gas tax program will support public transit in 107 municipalities across the province. The total amount of the gas tax, which is being shared among them, adds up to nearly $380 million.

The amounts for all 107 municipalities can be found here.