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TORONTO – As the cost of gasoline continues to rise in Ontario, so may the price of the gas tax.
A recent advisory panel report has recommended the province to implement a five-cent-per-litre hike in the gas tax to help fund public transit in the Toronto-Hamilton area.
According to the Canadian Taxpayers Federation, Ontario’s combined gasoline price includes federal and provincial taxes, in additional to the actual crude oil cost.
The percentage breakdown for a litre of gasoline in Ontario in 2012 is as follows:
- Crude Costs – 41 per cent
- Refiner Operating Margin – 23 per cent
- Marketing Operating Margin – 5 per cent
- Provincial Excise Tax – 11 per cent
- Federal Excise Tax – 8 per cent
- Provincial HST – 7 per cent
- Federal GST/HST – 5 per cent
A recent study by Gasbuddy.com indicates people in British Columbia pay the highest gas prices in North America.
Gas taxes in B.C. make up 29 per cent of the overall pump price and 23.5 per cent for diesel.
Alberta has the lowest gas tax, along with the lowest pump price, and B.C. and Quebec have the highest pump prices. Ontario drops in the middle of the pack.
Drivers in the Vancouver area for example pay about 49 cents of tax per litre. It includes the 17 cents from Translink, the local transit authority, as well a 6.7-cent carbon tax, 8.5 cents in provincial taxes, 10 cents in federal gas taxes, and the 5 per cent GST on top of that.
A comparison of the 12 month average price of gas this year between Toronto, Calgary and Vancouver shows the west coast city posting higher numbers than that of Ontario’s largest city.