The Alberta fuel tax relief could be gone by the end of this month

Just in time for the busy summer travel season, the Alberta fuel tax relief could be partially or fully gone by the end of this month.

The relief, which has been in effect since the start of this year, saw a pause in the collection of the full 13-cent provincial fuel tax on gasoline and diesel.

The pause is set to expire on June 30, and the province says it will continue to provide fuel tax relief “whenever the average oil prices during each quarter’s determination period are above $80 per barrel.”

The provincial government says it will conduct the next review of average prices in mid-June and provide an update before the start of the next quarter.

What the fuel tax collection reinstatement will look like

When WTI prices are $90 or more, the fuel tax collection is paused, and the fuel tax rate is zero cents per litre.

When they drop anywhere from $85 to $89.99, the fuel tax will be reinstated partially and the fuel tax rate will be 4.5 cents per litre. The partial reinstatement continues if prices fall to the $80 and $84.99 range, with the fuel tax rate clocking in at nine cents per litre.

If WTI oil prices plummet to $79.99 or less, the fuel tax will be reinstated in full, and Albertans can say goodbye to the 13-cents-per-litre relief.

In April 2022, the Alberta government suspended the gas tax collection, reducing the price at the pump by 13 cents per litre as motorists struggled with rising gas prices alongside record-setting inflation.

That reduction was dropped down to 8.5 cents per litre in October due to lower oil prices but was later fully reinstated.