Alberta gas prices: Will province’s plan result in relief?
Posted Mar 8, 2022 1:04 pm.
The Alberta government has promised to cut gas prices by eliminating the collection of the provincial fuel tax.
The changes are set to come into effect on April 1, and come after the average price of gas in Alberta rose 20 cents a litre in the last week alone.
Gas prices can be seen spiking in Alberta from February to March 2022 as Russia’s invasion of Ukraine affects oil prices across the globe. PHOTO: GasBuddy.com
So, with the rising cost of gas outpacing how fast the government can get Albertans relief, will it really make a difference in the long run?
It’s a question even industry experts are having trouble answering.
“It may be something to wait for, but I wouldn’t necessarily say it’s something you can predict,” explained Richard Masson, an executive fellow with the University of Calgary School of Public Policy. “We saw oil prices go up, you know, $15 at one point [Sunday] night and they’ve settled down a little bit.”
Masson says once all of that translates through the system, we will see prices continue to rise.
“Tax relief is helpful, but it’s really what goes on in the world and how long this conflict drags out and what countries are going to do to stop buying Russian crude that’s going to make the biggest difference.”
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He explains that we are in unprecedented times currently, in an age when the world is short on oil and we continue to depend on it.
On top of that, we are taking one of the biggest oil producers in the world right out of the market.
“It will have implications that likely lasts for years.”
Oil prices globally have remained on the rise after Russia invaded Ukraine last month. Masson says he expects oil prices to stay high and very volatile for the near future and, depending on how long the war in Ukraine lasts, could continue for the foreseeable future.
The average cost of gasoline in Alberta is $1.65/l, while the national average is around $1.80/l.
