Ontario drivers experienced some relief from record-setting prices at the pump on Friday as the province’s gas tax cut came into effect.
The Ontario government cut the gas tax by 5.7 cents per litre until the end of the year, though Premier Doug Ford said he would consider an extension if inflation remains high.
Drivers noticed the impact Friday at gas stations in the Toronto-area, where prices dropped around 11 cents overnight to $1.93 — only partly attributable to the tax cut.
“Every dollar counts,” said Matthew Johnston as he filled up a cargo van at a downtown Toronto gas station. “This will actually help a bit.”
Gas prices in Toronto are up nearly 40 per cent since the start of the year, reaching a record high $2.15 per litre in early June before ending the month around $2.00 per litre.
Cut also applies to diesel
Johnston, who runs an upstart catering business and works at a winery, says the soaring price of gas paired with inflation has forced him to cut back on spending.
“I haven’t been able to go out or do anything anymore. It’s honestly just all gone to gas, rent — you know, just the cost of living,” he said.
He usually puts $60 in the tank to make his near-daily commute to the Niagara area. On Friday, he opted to try a $40-fill-up.
The tax cut is expected to cost the province $645 million while it’s in effect. Analysts note Ford may face a tough decision in December when the measure expires and with prices likely to rise again before Christmas.
The legislation passed this spring will also cut fuel tax, which covers diesel, by 5.3 cents per litre until Dec. 31.
Hermain Kazmi called the tax cut a move in the right direction as he pumped gas into his car. He said high gas prices recently pushed him to use more public transit, but he expected to return to his previous driving habits if prices came down.
Kazmi was “100 per cent” in support of the government extending the tax cut into 2023, even expressing the hope it could lead to more financial relief.
“I don’t think a 10 cent drop would make a huge impact. It’s a good change but I think it needs to come down lower depending on how much inflation is and how salaries have not matched how inflation has gone up,” he said.
Price tied to increased demand, invasion of Ukraine
The soaring price of gas, a key driver of inflation, is tied to an increased demand for oil as the economy reopens after the COVID-19 pandemic. The situation has also been exacerbated by a global supply crunch caused in part by Russia’s invasion of Ukraine.
Ali Avali stopped to fill up his SUV on the way to a park outside Toronto, with his dog, an Alaskan Malamute, perched in the backseat.
“The only reason I drive is because of this guy. I take him out to do a bit of running in the country,” he said.
Once the loan is paid off on the SUV, Alavi said he plans to switch to an electric vehicle. He said he opposed a gas tax cut, suggesting that if prices continued to go up, more people may also be inclined to make the switch.
“When I see gas prices going up, it doesn’t really piss me off,” he said.
TORONTO – At least one competition expert says the record $38.9 million fine against Cineplex Inc. is bound to encourage more action against companies engaged in a deceptive practice known as drip pricing.
The theatre operator was found late Monday to have engaged in the practice, where customers are drawn into a purchase without full disclosure of the final cost.
The Competition Bureau’s case against Cineplex related to a $1.50 charge many customers were forced to pay when purchasing movie tickets online.
Vass Bednar says these types of fees are common across many sectors, providing plenty of fodder for potential future cases that could delve into the pricing of airline, bus and concert tickets.
The executive director of McMaster University’s master of public policy program says the Competition Bureau’s success with the Cineplex case shows there’s no issue too small for the watchdog to go after.
Cineplex maintains it has always been upfront about its $1.50 online booking fees and has said it will appeal the fine levied by the Competition Tribunal.
This report by The Canadian Press was first published Sept. 24, 2024.
MONTREAL – The Caisse de dépôt et placement du Québec has signed a deal with Brookfield Asset Management and its institutional partners to buy their 25 per cent stake in British power company First Hydro Co.
Financial terms of the deal by the Quebec investment manager were not immediately available.
First Hydro is responsible for the management and operation of two power plants in Wales.
Emmanuel Jaclot, CDPQ’s executive vice-president and head of infrastructure, says the investment marks the fund’s first foray into pumped hydro storage.
French utility Engie is the majority shareholder in First Hydro with the remaining 75 per cent stake.
The deal is expected to close by the end of 2024.
This report by The Canadian Press was first published Sept. 24, 2024.
Companies in this story: (TSX:BAM)
Note to readers: This is a corrected story. The headline in an earlier version incorrectly stated the country where First Hydro is located.
TORONTO – Brookfield Renewable and its institutional partners have signed an agreement to sell its Saeta Yield renewable energy business in Europe to the UAE’s Masdar in a deal valued at US$1.4 billion.
Saeta is an independent developer, owner and operator of renewable power assets in Spain and Portugal.
Masdar will acquire a portfolio of 745 megawatts of predominantly wind assets and a development pipeline of about 1.6 gigawatts worth of projects.
The deal excludes a regulated portfolio of 350 megawatts of solar power assets, which Brookfield will keep and continue to operate.
Mohamed Jameel Al Ramahi, chief executive officer at Masdar, says Saeta is a perfect complement to the company’s portfolio in Europe.
Masdar was established in 2006 and has developed and invested in projects in over 40 countries with a combined capacity of over 20 gigawatts.
This report by The Canadian Press was first published Sept. 24, 2024.
