Alberta government pushing ahead with fuel tax reintroduction

The Alberta government announced on Tuesday it will be extending its fuel tax relief into 2024, but a jump at the pumps is in the cards due to lower oil prices.

The tax relief was first introduced in April 2022 and was extended until the end of this year by Premier Danielle Smith back in June, with a sliding scale set to be used for cents saved at the pump depending on the price of oil at the end of each quarterly review.

The program sets fuel tax rates quarterly based on the average price of West Texas Intermediate (WTI), with a rule limiting rate increases to a maximum of nine cents per litre each quarter, President of Treasury Board and Minister of Finance Nate Horner stated in a news release.

You might also like:
• "Misplaced priorities": Alberta NDP slams Province's fuel tax reintroduction
• Here's how the fuel tax coming back to Alberta will impact you
• New provincial regulations could help Calgary, Edmonton lower housing costs

“As a result, Albertans will continue to save four cents per litre on gas and diesel in the first three months of 2024, with the fuel tax applied at a reduced rate of nine cents per litre. After that, Albertans will save some or all of the provincial fuel tax when WTI prices average $80 per barrel or higher in each quarterly review period,” Horner added.

The move to push ahead with the fuel tax reintroduction has garnered some pushback from Albertans, including Alberta’s NDP, which slammed the reintroduction of the policy, saying the move is “a clear indication” of the government’s “misplaced priorities.”

The Province says the fuel tax helps fund programs and services “Albertans rely on while maintaining our significant tax advantage.”

The provincial government added that it would provide another update on the fuel tax before the next quarter ends on March 31, 2024.