Alberta Premier Jason Kenney (Government of Alberta)

By rdnewsNOW Staff

PROVINCIAL FUEL TAX SAVINGS

Government announces relief at the pumps for Albertans

Apr 1, 2022 | 3:38 PM

Officials with the Alberta government say they are no longer collecting the provincial fuel tax while oil prices are high.

As a result, officials say drivers will save the 13-cent provincial fuel tax on every litre of gasoline or diesel they purchase.

With the corresponding reduction in GST, officials say this amounts to total savings of about $6.80 per tank for a compact car (50 litres), $7.21 for a small SUV (53 litres), $12.65 for a mid-size SUV (93 litres), $18.50 for a large pickup truck (136 litres) and $185.50 for a semi-trailer (1,364 litres).

The measure is in effect now and will remain in place until at least June 30. The government says it will consider the future of the tax, based on a sliding scale of the price of West Texas Intermediate crude.

“Alberta’s government is pleased to implement a measure that will provide real economic relief to Alberta families and businesses alike,” said Premier Jason Kenney, on Friday.

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“Elevated fuel prices don’t just impact Alberta drivers, they influence the price we pay for almost every service and product that relies on transportation to be rendered or delivered. With the provincial government’s intervention, all Albertans will now reap the benefits of money saved at the pumps and beyond.”

“We recognize the significant challenges rising inflation and high energy costs create for Alberta families and businesses,” added Travis Toews, President of Treasury Board and Minister of Finance. “Alberta is already one of the most affordable provinces to live in, and this relief measure serves to reaffirm the Government of Alberta’s commitment to maintaining that affordability for anyone living or doing business here.”

“Keeping commercial vehicles on our roads has been challenging because of factors like supply chain issues and driver shortages. Eliminating Alberta’s fuel tax will provide much-needed relief for industries so they can keep moving, remain profitable and help our economy grow,” noted Rajan Sawhney, Minister of Transportation.

In providing relief at the pumps to Albertans, the government says it will see an estimated $100 to $115 million decrease in fuel tax revenue for each of the first three months.

Albertans, however, are expected to see further relief through other cost-saving measures to be introduced in the coming months:

• Alberta’s government says it will provide $150 in electricity rebates to more than one million eligible homes, farms and businesses that have been affected by above-average consumption costs over the past several months.
• A natural gas relief program, announced as part of Budget 2022, is expected to see eligible consumers receive a rebate when natural gas prices exceed $6.50 per gigajoule starting in October.
• Further details about both programs are anticipated in the coming weeks.

Government officials say enhancing and maintaining affordability remains a key component of Alberta’s Recovery Plan, developed to foster and facilitate the province’s economic recovery in the wake of the COVID-19 pandemic.

Despite some gas stations providing relief at the pump due to the fuel tax pause, Alberta’s NDP says it’s not enough to help Alberta families with the added costs from the UCP government.

The Opposition says while prices dipped at some gas stations, in many places, prices were unchanged.

“I’ve been getting messages from Albertans all morning who aren’t seeing any price relief at their local gas station. And one thing we all know about gas prices is that they move around continuously. We’ll have to wait and see if price dips survive more than a few days,” said NDP Energy Critic Kathleen Ganley.

“Over the past few days, I’ve been asking the UCP how they will ensure that their pause on the gas tax will actually be passed along to Alberta families and not just swallowed up by retailers.”

Alberta’s NDP says it called for a third-party audit to demonstrate whether savings were actually passed on to Albertans for the life of this program. The party says the UCP ignored this request.

Even under the best-case scenario, the NDP says the provincial gas tax represents a tiny fraction of the costs the UCP has piled on to families and businesses through car insurance, utility bills, higher taxes and increased fees.

The Opposition says some Albertans have seen car insurance increases as high as 30 per cent.

“In the Legislature, we’ve been pressing the UCP to offer real help to Albertans, especially in light of the huge windfall in terms of resource revenue, but they refused and passed a no-help budget,” said Ganley. “This government is taking money out of the pockets of families and businesses at every turn. Albertan’s can’t trust the UCP.”