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  • News
  • January 27, 2017

Ontario Helping Ottawa Improve and Expand Public Transit

Province Providing New Funding to Manage Congestion, Improve Commutes

Ontario is helping Ottawa enhance and expand its transit system, to reduce congestion, shorten commute times, and help people get to where they’re going faster.


This year, Ottawa is receiving $34,363,718 in gas tax funding to support public transit upgrades and enhancements that could include purchasing new transit vehicles, adding more routes, extending hours of service, or improving accessibility.


Starting in 2019, Ontario will increase funding for Ottawa and other municipal transit systems across the province through an enhancement to the existing gas tax program, doubling the municipal share from two cents per litre to four cents by 2021. There will be no increase in the tax that people in Ontario pay on gasoline as a result of the enhancement to the program.


Ottawa, which has received an average of about $33 million per year in gas tax funding, could  see its funding increased to an estimated $41 million in 2019/20, $49.5 million in 2020/21 and to $66 million in 2021/22.


Ottawa is able to use gas tax funding to make major infrastructure upgrades, buy additional transit vehicles, add more routes, extend hours of service, implement fare strategies and improve accessibility.


Supporting stronger public transit systems is part of our plan to create jobs, grow our economy and help people in their everyday lives.





“Thanks to the stable funding provided through the gas tax program, our government is committed to helping Ottawa improve its public transit network. Our commitment to gradually increase the share of the gas tax means that OC Transpo and Ottawa can continue to make improvements to benefit local commuters, families and visitors to our community.”  

- John Fraser, MPP for Ottawa South


“The City of Ottawa has benefited greatly from having the Ontario Gas Tax Program as a permanent, reliable source of funding. Since 2004, the City has invested approximately $416 million for transit capital projects, providing service to more than 96 million customers each year. In addition to the anticipated $34.363 million in Gas Tax funding, I am pleased that the City will receive a gradual increase of almost $70 million by 2022 in Gas Tax.”
- Mayor Jim Watson, City of Ottawa




  • Funding will increase to 2.5 cents per litre in 2019–20, 3 cents in 2020–21 and 4 cents in 2021–22.


  • This year the province committed $334.5 million in gas tax funding to 99 municipalities. This amount is expected to increase to about $401.3 million in 2019–20, $481.5 million in 2020–21, $642 million in 2021–22.


  • Ontario made gas tax program funding permanent in 2013 to provide a stable source for municipal transit investments.


  • One bus takes up to 40 vehicles off the road, and keeps 25 tonnes of greenhouse gas emissions out of the atmosphere each year.


  • Research shows that every $100 million of public infrastructure investment in Ontario boosts GDP by $114 million, particularly in the construction and manufacturing sectors.




Gas Tax Funding for Municipalities


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