Reducing tolls on the Confederation Bridge and fares for the Wood Islands-Caribou Ferry

Effective August 1, 2025, the Government of Canada reduced tolls on the Confederation Bridge and fares for federally supported ferry services in Eastern Canada. The measure lowers Confederation Bridge tolls from $50.25 to $20.00, eliminates charges for additional axles, and cuts all fares for the Wood Islands–Caribou Ferry by 50 per cent.

PBO estimates that the measure will increase the Government’s transfer payments by $206 million over 2025-26 to 2029-30.

• Estimates are presented on an accrual basis as would appear in the budget and public accounts.
• A positive number implies a deterioration in the budgetary balance (lower revenues or higher spending). A negative number implies an improvement in the budgetary balance (higher revenues or lower spending).
• Totals may not add due to rounding

The incremental cost of the measure is defined as the revenue shortfall from the toll and fare (price) reduction. Historical traffic was calculated using data provided by Transport Canada. Historical prices were obtained from the public websites and their values between 2025-2029 were adjusted to reflect the announced reductions. When applicable, future traffic was projected using its average growth rate between 2015 and 2024, and prices were indexed to inflation using PBO’s CPI projection. For 2025 to 2029, total costs were calculated as the difference between the former and new prices, multiplied by the number of bridge crossings or ferry-fared vehicles, adjusted for passenger or vehicle type and including fuel surcharges where applicable.

The main source of uncertainty relates to traffic projections. A behavioural response was not incorporated. The cost of the measure may be underestimated if the announced price reductions lead to increased transportation demand that results in materially higher foregone revenues.