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Pump prices set to drop 11 cents Friday as tax cut takes effect

There have only been two days in June where gas prices have been below $2/litre
pumping gas
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If you need to fill up your vehicle with gas ahead of the long weekend, you may save a few bucks waiting until Canada Day.

Roger McKnight, Chief Petroleum Analyst at En-Pro, said the price at the pumps is expected to drop 11 cents on Friday at most Waterloo Region stations to 193.9 cents/litre.

McKnight said this is likely due to a combination of the reduction of the Ontario gas tax and a drop in wholesale prices.

He called the upcoming tax cut an overdue “Band-Aid solution” but consumers will likely see some benefit in its early days.

There have only been two days in June where gas prices have been below $2/litre.

Ontario gas tax cut starts Canada Day

Premier Doug Ford will be holding a news conference on Thursday to mark the cut in the gas tax, which goes into effect on Friday.

The provincial government introduced the legislation back in April that would will lower the gas tax by 5.7 cents per litre and the fuel tax, which covers diesel, by 5.3 cents.

The cut to the tax will remain in effect until Dec. 31, 2022.

The drop in wholesale prices can be attributed to an increase in U.S. inventory and a slowdown of the U.S.’s demand for gas, diesel and jet fuel.

Ontarians will also be getting more money from the federal government’s carbon-price rebate cheques to combat the high price of gas.

For the first time, the payments will come quarterly, rather than hidden as a lump sum in annual tax-return deposits. The first cheques in 2022 will be a double payment for two quarters in July, followed by quarterly payments in September and January 2023.

-- with files from Michael Ranger and The Canadian Press