Province tops up Gas Tax funding to make up for reduced gas sales during COVID-19
Mississauga/Peel – The Ontario government is providing $18,932,146 to the City of Mississauga and $482,539 to the Region of Peel, to support the expansion and improvement of public transit services in Mississauga. The funding is part of the province’s Gas Tax program which will allocate $375.6 million this year to 107 municipalities that deliver public transit.
“Our government recognizes the importance of public transit systems and the challenges our communities face in order to maintain service levels during this pandemic,” said Nina Tangri, MPP for Mississauga-Streetsville. “This Gas Tax Program will provide funding of over $18 million to the City of Mississauga and over $400,000 to the Region of Peel, which will continue to benefit our community, as it will help municipalities support local public transit systems and help increase overall ridership.”
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, which can be used to extend service hours, buy transit vehicles, add routes, improve accessibility or upgrade infrastructure.
To make up for reduced gas sales due to COVID-19, this year’s Gas Tax funding includes one-time additional funding of $120.4 million to ensure municipalities can support their transit systems.
“Throughout the COVID-19 pandemic, we have seen how critical public transit is for frontline workers and for Ontarians who depend on these services to get to medical appointments, the grocery store and other important locations,” said Caroline Mulroney, Minister of Transportation. “Gas Tax funding remains a vital source of long-term transit funding that municipalities can rely on to help operate and expand existing public transit services – ensuring people have access to safe and reliable transportation when they need it.”