As of today, the Government of Alberta is no longer collecting the provincial fuel tax saving drivers 13-cents a litre at the gas pumps.
With the corresponding reduction in GST, this amounts to total savings of about $6.80 per tank for a compact car (50 litres), $7.21 for a small SUV (53 litres), $12.65 for a mid-size SUV (93 litres), $18.50 for a large pickup truck (136 litres) and $185.50 for a semi-trailer (1,364 litres).
The removal of the provincial fuel tax will be in place until at least June 30, 2022 the removal will then be reviewed once more by the provincial government. In providing relief at the pumps to Albertans, the government will see an estimated $100 to $115 million decrease in fuel tax revenue for each of the first three months but Kenney says it will not affect the province’s budgets.
“Here in Alberta we're seeing the benefit of pausing the suspension of the provincial fuel tax. It will be in place as long as we benefit from high oil prices north of $80.00 a barrel per WTI. That protects our budget as well, because we know that as long as WTI is trading at north of 80 bucks a barrel that our finances will be in balance,” explained Alberta Premier Jason Kenney.
The Premier also looks forward to reducing costs for farmers and truckers as well.
“This is not just about motorists. Everything you get at the grocery store is brought in by a truck and every one of those trucks has to pay for diesel. Today, we also reduce the price of diesel and we also reduce the price of marked fuel for our farmers who are struggling to cope with record high input costs, so that pretty much the price of everything that you buy is affected,” explained Kenney.
Additionally, the province is providing $150 in electricity rebates more information on that will be provided at a later date.