The Government of Alberta will be ending the Fuel Tax Relief program now that the price of oil is dropping which means the provincial fuel tax will be reinstated.
“Earlier this year, Alberta’s government introduced the fuel tax relief program to help Albertans deal with higher fuel costs. The program continues to provide fuel tax savings as long as the average price of WTI is above US$79.99 per barrel. In the first six months of the program, Albertans saved $630 million in fuel tax relief,” said Minister of Finance Jason Nixon.
The tax will be reinstated in phases based on the price of West Texas Immediate Crude. Previously, the provincial fuel tax cost Albertans 13 cents per litre.
““The government committed to reviewing the program quarterly and re-evaluating fuel tax savings in stages only if the average price of West Texas Intermediate (WTI) crude oil fell below US$90 per barrel.
As the global economy slowed, WTI prices over the four-week period ending Sept. 15 averaged $89.26 per barrel. Over this same period, Albertans have been paying the lowest gas prices in the country as prices continue to fall,” added Nixon.
The first increase will begin in October. The price of gas will increase by 4.5 cents per litre.
“Albertans will save over $200 million over the next three months with fuel tax savings at 8.5 cents per litre starting Oct. 1. Alberta will continue to have the lowest provincial fuel tax in the country at 4.5 cents per litre,” added Nixon.
The Alberta Government will be re-evaluating the program in December of 2022.