EDMONTON—Alberta drivers will see a continued freeze on provincial fuel taxes, saving motorists 13 cents per litre with every fill of gas or diesel until the end of the year, following a vote in the legislature.
Premier Danielle Smith and the United Conservative Party (UCP) made the freeze on fuel tax a campaign promise during the recent election, which took place on May 29. The Alberta legislature and Treasury Board voted in favour of the freeze, which is in place regardless of oil prices, until Dec. 31, 2023.
“Whether it’s groceries, baby formula, or laundry detergent, lower fuel costs means shipping products to stores cost less,” said Smith. She said small business owners will also benefit from the reduction in taxes.
The premier was asked what would happen if gas stations pocket the savings instead of passing it on to consumers. Smith said Service Alberta “has the ability to enact consumer protection fines if companies are gouging,” and it is her “expectation” going forward that the province’s gas prices will remain the lowest in the country.
Fuel prices are higher on the east coast, starting with New Brunswick at 160.9 cents per litre, followed by P.E.I. at 161 cents, Newfoundland and Labrador at 169.9 cents, and Quebec coming in at second highest in the country, at 170.4 cents.
“To date, Albertans have saved $1.5 billion and paid what have often been the lowest fuel prices in the country. Extending the pause will save another $520 million for Albertans,” the government said, noting that the Canadian average fuel cost sits at about 158.8 cents per litre.
Drivers in the province are still paying roughly 31 cents in federal taxes per litre of gas, with the federal government’s carbon tax increase in April, said the province.
The fuel tax was first introduced in April 2022 under then-Premier Jason Kenney, and was used again in January with the government stating it wanted to “help combat high inflation.”
Smith said her government is “committed to keeping life affordable for Alberta families.”
Horner said that Alberta is in a “strong fiscal position” and can offer the fuel freeze to try and help Albertans with the rising cost of living and inflation.
“These savings have and will continue to have a real impact on the pocketbooks of Albertans,” said Horner.
As of Jan. 1, 2024, Alberta will see a permanent fuel tax relief program come into place, which will offer savings on the provincial portion of fuel taxes based on the price of West Texas Intermediate (WTI). If the WTI price exceeds legislated thresholds—should it reach $90 or more average per barrel—Alberta will drop the fuel tax collection entirely.
If oil sits at $85 to $89.99 average per barrel, the fuel tax will be partially reinstated at 4.5 cents/litre. If oil goes to a price of $79.99 average per barrel or less, the fuel tax will be fully reinstated at 13 cents per litre, but will be phased in gradually to “reduce price shock to consumers,” the government said.
