Transit riders call for fare relief

Toronto, ON (April 4, 2022) – Membership-based transit rider organization TTCriders released the following statement in response to the provincial proposal to reduce gas and fuel taxes for a 6-month period: 

“Reducing transit fares and increasing service will encourage more people to take public transit. Transit riders also need relief from the rising cost of fares in Ontario.

107 Ontario transit agencies rely on an annual funding transfer from the gas tax. Minister Mulroney chipped in an extra $120 million to local transit agencies this year, because gas sales went down during the pandemic.

That’s why transit agencies need stable operating funding from the provincial government to meet our climate goals and build back transit ridership with more frequent service and affordable fares. The TTC is projecting budget shortfalls for the next three years and needs stable funding to prevent service cuts.”

Background on provincial gas tax and transit funding: 

  • Ontario has pledged to ensure that the proposed reduction in gas tax will not impact gas tax transfers to 107 municipal transit agencies. 2 cents per litre of gas sold is transferred to municipalities, using a formula based on population and ridership. Municipalities can use the annual funding for transit capital or operating expenses.
  • Gasoline sales were lower during the pandemic. The province transferred $120 million in one-time additional funding to address the impacts of COVID-19 on the 2021-22 Gas Tax program. Gas tax revenues are unstable and could continue to trend downwards due to factors such as greater fuel efficiency and more electric vehicle use.
  • Premier Ford broke a pre-election pledge to double the share of the gas tax revenues transferred to municipal transit agencies, costing the TTC $1.1 billion over 10 years. 
  • The TTC is projecting an operating budget deficit of $561 million in 2022, with future deficits into 2023 and 2024 as ridership continues to recover. The provincial and federal governments have provided several rounds of emergency transit operating support, but not past 2022.

Contact:
Shelagh Pizey-Allen
(416) 309-9026

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