The Alberta Government will suspend the provincial fuel tax on January 1, 2023. (Photo: Korzeniewski | Dreamstime.com)

By David Opinko

Cost of Living

Alberta Government to suspend provincial fuel tax January 1

Dec 20, 2022 | 3:23 PM

Drivers can expect some relief at the pumps in the new year.

Effective January 1, 2023, the Government of Alberta will fully suspend the provincial fuel tax for a period of six months.

Alberta Finance Minister and Grande Prairie-Wapiti MLA Travis Toews says this will lower the price of gasoline and diesel by 13 cents per litre.

“These are meaningful savings that will have a real impact on Albertans’ finances,” says Toews. “For example, if you drive a pickup truck and fill up once a week, you’ll save about $440 on average in the next six months. If you drive a car or an SUV, you’ll save anywhere from $160 to just over $300.

The fuel tax suspension will remain in effect until June 30, 2023. Starting in July, the province will return to the current system of providing fuel tax relief based on the price of West Texas Intermediate oil.

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When Alberta’s fuel tax was initially temporarily suspended on April 1, 2022, Toews said upwards of $850 million in savings was realized.

According to GasBuddy.com, the average price of regular unleaded fuel in Lethbridge on Tuesday, December 20, 2022, is 125.9 cents per litre.

This marks a decrease of 24 cents compared to the same time last month and 14 cents from the same period in 2021.

Gas prices reached an all-time high in the city on June 12, 2022, when fuel cost 193.9 cents per litre on average.

The lifting of the fuel tax is just one part of the proposed Inflation Relief Statutes Amendment Act.

Some of the other proposed measures of the Act include targeted payments to seniors and families with dependent children under the age of 18, mitigating spikes to regulated electricity rates, and continuing support for utility rebates.