Relief at the pumps is here for Albertans
Alberta’s government is no longer collecting the provincial fuel tax while oil prices are high.
Drivers will save the 13-cent provincial fuel tax on every litre of gasoline or diesel they purchase.
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 measure is in effect now and will remain in place until at least June 30. The government will consider the future of the tax, based on a sliding scale of the price of West Texas Intermediate crude.
“Alberta’s government is pleased to implement a measure that will provide real economic relief to Alberta families and businesses alike. Elevated fuel prices don’t just impact Alberta drivers, they influence the price we pay for almost every service and product that relies on transportation to be rendered or delivered. With the provincial government’s intervention, all Albertans will now reap the benefits of money saved at the pumps and beyond,” said Jason Kenney, Premier.
“We recognize the significant challenges rising inflation and high energy costs create for Alberta families and businesses. Alberta is already one of the most affordable provinces to live in, and this relief measure serves to reaffirm the Government of Alberta’s commitment to maintaining that affordability for anyone living or doing business here,” commented Travis Toews, President of Treasury Board and Minister of Finance
“Keeping commercial vehicles on our roads has been challenging because of factors like supply chain issues and driver shortages. Eliminating Alberta’s fuel tax will provide much-needed relief for industries so they can keep moving, remain profitable and help our economy grow.” - Rajan Sawhney, Minister of Transportation
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.
Albertans will see further relief through other cost-saving measures to be introduced in the coming months:
Alberta’s government will provide $150 in electricity rebates to more than one million eligible homes, farms and businesses that have been affected by above-average consumption costs over the past several months.
A natural gas relief program, announced as part of Budget 2022, will see eligible consumers receive a rebate when natural gas prices exceed $6.50 per gigajoule starting in October.
Further details about both programs will be announced in the coming weeks.
Enhancing and maintaining affordability remains a key component of Alberta’s Recovery Plan, developed to foster and facilitate the province’s economic recovery in the wake of the COVID-19 pandemic.
