Alberta to reduce gas tax, offering $150 rebate on electricity

The province says because the GST also applies to provincial fuel taxes, the 13-cent reduction will also reduce the GST by 0.65 cents per litre, for total tax savings of about 13.6 cents per litre of gasoline and diesel.

However, Kenney explains that this fuel tax relief is based on a sliding scale for oil prices.

“When the price of oil is over $90 per barrel, (West Texas Intermediate), the fuel tax will be removed completely, when the price of oil (WTI) is less than $80 per barrel, the fuel tax of $0.13 per litre will be in full effect.”

The premier calls this ‘fiscally responsible relief’ placed into effect if the province is generating ‘significant additional revenues.’

“That protects Alberta’s budget and our fiscal health as a province because as those oil prices go up, so too do revenues to the Provincial Treasury.”

The federal carbon tax rate on gasoline is set to increase again on April 1, from just under nine cents per litre to just over 11 cents per litre.

“Right now, at a time that everything is getting more expensive in part because of Ottawa’s deficit spending, Ottawa is adding to that pain by directly increasing how much it costs to take your kids to school or hockey practice and how much it costs to drive to work,” suggested Kenney.

“These costs will drive up the price of groceries and up further as it costs more and more to get delivery trucks from warehouses to stores.”

“I really do not understand how Justin Trudeau and Rachel Notley can possibly think that now is the right time to add even more costs to their day-to-day living with their punishing carbon tax,” he added.

Electricity bill rebates

Alberta’s government will also provide $150 electricity rebates in an effort to help Albertans pay for the high bills they faced this winter. Over one million homes, farms and businesses are expected to receive a $50 monthly rebate for three months.

“Alberta families who have consumed less than 250 megawatt-hours of electricity, and that’s the vast majority, almost all households will receive a $150 rebate on their electricity bills for this past winter.”

Kenney says his government will work with utilities and regulators to determine the exact details including rebate timing, however, he says they will work to have these rebates applied directly to the consumer’s bill.

‘It may take a little while for Albertans to actually see the rebate as we have to work with over 45 energy providers in the province, but rest assured, this relief is coming.”

This rebate will combine with the Natural Gas Rebate program announced in Budget 2022 to provide real relief for Albertans.

The province says it will also review the collection of the fuel tax on a quarterly basis, if required, consider reinstating collection in stages, based on the average price of West Texas Intermediate (WTI) over a number of weeks.

The government will not start to reinstate collection before July 1.

(With files from Canadian Press)

by Abby Zieverink

Alberta to reduce gas tax, offering $150 rebate on electricity

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