Ontario gives $120M boost to cities' gas tax funding to make up for low fuel sales

Ontario municipalities with public transit systems are receiving an additional $120 million in funding this year.

The Ontario government provides those communities with two cents per litre of the provincial gas tax revenue it collects.

But this year, the government is topping up the funding with the additional cash to make up for reduced gas sales during the COVID-19 pandemic.

The 107 municipalities will be receiving more than $375 million in total.

Transportation Minister Caroline Mulroney says the gas tax funding allows municipalities to operate and expand public transit systems that people rely on for work and essential trips.

About half of the funding goes to the city of Toronto.