Alberta Mirror

Alberta to halt regional fuel tax to support customers astounded by high costs


Key takeaways: 

  • Province will also offer $150 electricity refunds to households, farms, small firms.
  • With soaring fuel costs, Alberta drivers struck hard at the pumps will get a break beginning April 1, Premier Jason Kenney declared Monday.

Fuel Tax relief to be given to Alberta citizens: 

The Alberta government will support hard-hit customers by halting the collection of its 13-cent per liter regional fuel tax on April 1, Premier Jason Kenney stated Monday.

“This massive tax relief is a reaction to rocketing prices at the pump and is going to offer Albertans with the ease that they require when the price of everything is going up,” Kenney told a press conference. “Albertans told us they required relief from increasing costs. We’ve heard them loud and clear.”

The break-in tax collection will apply to gasoline and diesel fuel. The change will also apply to the four-cent per liter local fuel tax on petrol and diesel marked (dyed).

Kenney said that the pause would stay as long as the benchmark cost for West Texas Intermediate (WTI) crude oil remains exceeding $90 US per barrel. He said managing the local fuel tax would continue when WTI costs drop below $80 US.

Read more: Quilters are sensing the pinch as the price of a batting skyrockets 

Fuel tax to be paused in Alberta to ease consumers

The government will check the fuel tax collection every quarter and, if needed, consider reinstating collection in phases, based on the average cost of WTI over several weeks, the region said in a press release.

They told the government would not reinstate the gasoline tax until July 1.

If the halt in fuel tariff collection is in place for the entire fiscal year, the price would be approximately $1.3 billion, Finance Minister Travis Toews told the press conference.

April 1 is the day the federal carbon tax is imposed to grow again, from slightly under nine cents per liter to just over 11 cents per liter.

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