Here's how the fuel tax coming back to Alberta will impact you
Albertans will soon have to start paying fuel taxes again, something they haven’t had to do since the spring of last year.
The provincial government first introduced a pause on fuel taxes in April 2022 and continued that pause in January 2023.
With the price of oil on a decline, that’s going to change in the new year.
A spokesperson from the finance minister’s office told Daily Hive Urbanized that it’s introduced new policies that focus on, among other things, decreasing debt.
“Alberta’s government introduced new fiscal rules that focus on paying down debt and spending responsibly so Albertans can continue to benefit from our pro-growth, low-tax environment,” the spokesperson said in an email.
“We will continue to work to save Albertans money and keep this province affordable for years to come.”
Back in June, the province also posted an update to its website that starting on January 1, 2024, the gas tax will be back.
Albertans don’t pay provincial taxes on fuel, but they do pay GST, a federal fuel tax of 10 cents per litre, and 14.31 cents per litre for the carbon tax.
So, how are the new rules going to work? Here’s the breakdown:
Taxes will be collected based on the price of a barrel of oil as determined by West Texas Intermediate (WTI).
The tax will be fully reinstated at 13 cents per litre if the price per barrel is US$79.99 or less.
It’ll be partially reinstated at nine cents per litre if the price is between US$80 and US$84.99 per barrel.
If oil is between US$85 and US$89.99 per barrel, the tax will be partially reinstated at 4.5 cents per litre.
If the price per barrel is US$90 or more, fuel tax collection will continue to be paused and will cost zero cents per litre.
A barrel of oil contains 159 litres. On Monday, the price per barrel was hovering around US$75, according to WTI.
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