This year's cut of the gas tax pie for the City of Guelph is $2.8 million.
Guelph MP Liz Sandals made the announcement at Guelph City Hall on Thursday morning.
The gas tax funding is money the province collects on gasoline sales then distributes to 99 municipalities in the province for use on their transit operations. Two cents on every litre of gas sold goes into the fund, which is then distributed to the municipalities based on transit ridership.
It can be used on everything from new buses to adding routes or improving accessibility, Sandals said.
"Thanks to stable funding provided through the gas tax program, Guelph Transit can make improvements that benefit local commuters, families and visitors to our community," Sandals said.
In thanking Sandals, Mayor Cam Guthrie said the money has several benefits, from helping reduce traffic congestion to making it easier for people to get around the city.
Province-wide, this year's gas tax funding totals $334.5 million, an increase of $1.6 million over last year.