Alberta gas relief plan suspends provincial fuel tax

Good timing for a weekend road trip — gas prices fell Friday as the province dropped the 13 cent excise tax.

We’re helping Albertans keep more money in their pockets. Starting today, we are pausing the collection of the $0.13/L provincial fuel tax while oil prices are high. This measure will be in effect until at least June 30: https://t.co/mpl0WZFUtz pic.twitter.com/l2VzOGoVMl

— Alberta Government (@YourAlberta) April 1, 2022

 

Alberta’s provincial fuel tax is being suspended for now, amid soaring gas prices across the country.

The price at the pumps fell sharply Friday as the province followed through on eliminating the excise tax due to high oil prices, which had been adding 13 cents to every litre.

However, the actual reduction is more like 10 cents cheaper compared to Thursday because the federal carbon tax also went up.

Premier Jason Kenney says this will be the case so long as the price of Western Texas Intermediate stays over $90US.

BREAKING

Alberta’s government will help people with the skyrocketing cost of energy by eliminating the provincial gas tax while prices are high.

Details here: https://t.co/UjUxJnDCgP pic.twitter.com/RzjSfXWFbf

— Jason Kenney ???????????????????????? (@jkenney) March 7, 2022

The high cost of fuel is a major expense for commercial trucking companies, as they move goods across great distances to keep our shelves stocked. Eliminating the provincial fuel tax will keep trucks on the road and Albertans employed. https://t.co/nIV50lVxrn #abroads pic.twitter.com/GNdXhW5npf

— Rajan Sawhney (@RajanJSaw) April 1, 2022

Kenney made the announcement along with Finance Minister Travis Toews and Transportation Minister Rajan Sawhney on Friday, April 1.

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

Kenney says taking off the gas tax will put a lot more jingle in your jeans adding the high oil prices mean they won’t really lose much revenue either.

“So we are not going to take more money out of people’s pockets if we don’t need it to maintain a balanced budget,” said Kenney.

And Kenney says that will equate to a lot of extra money in your pocket every time you fill up.

But the premier says he is still trying to put an end to the federal carbon tax, which also rose by a couple of cents today and Kenney issued a dire warning. 

“They don’t intend to stop today with their 25 per cent increase in the carbon tax, the sky’s the limit for these guys,” said Kenney.

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Rebates will also be going up for the vast majority of Canadians, though Kenney says that is still not a silver lining.

Kenney adds he’s not also a fan of rebates which are also going up.  

“I’m not at all happy with these fake rebates when in fact this is a deliberate policy to increase the cost of living,” said Kenney. 

Even with the gas savings, though many Albertans continue to pay high insurance costs, finance minister Travis Toews says they’re working on it.

“Over the last 12 months we’ve actually seen a decline on average in terms of automobile insurance rates in the province with some insurers dropping their premiums by as much as 7 per cent [and] we’re watching it, we’re monitoring it,” said Toews.

The United Conservative Party (UCP) says the government will see about $100 million less in fuel tax revenue for each of the first three months and will revisit the plan in July.

Kenney adds that removing the tax won’t hurt provincial revenues because oil prices are so high.

He says Alberta’s government is taking real action to save people money to put more jingles in their jeans to let them keep their hard-earned cash.

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Read More:

• Thousands of Alberta families’ utilities could be cut off: advocates

• Utility cut-off ban extension rejected by UCP despite high energy prices

• Alberta fuel, energy prices soar but government’s affordability plan beyond gas tax unclear

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At the gas stations, this driver CityNews spoke to said it will make the experience easier.

“I’ve been going to Costco to fill up because even though the expensive gas prices they’ve had lower gas prices so I’ve gone there and I’ve even waited a half an hour just to fill up,” said the ongoer.

It does come as a relief for drivers as one person we spoke to was expecting a busy morning.

“I woke up earlier and left for work early knowing I had to stop at the pump and hopefully fill up,” said the ongoer.

Peter, who is a gas attendant, had also been telling customers this was on the way.

“I may be at fault but I’ve been encouraging them to just wait a couple of days because the price of gas is going to drop,” said the ongoer.

Along with the fuel tax suspension, the UCP says it’s providing a $150 rebate on power bills for those affected by high costs, as well as a natural gas relief program. The province says more information will be announced on these in the coming weeks.