Alberta to scrap provincial fuel tax in 2023

Alberta is playing a back-and-forth game when it comes to the fuel tax, announcing it will be scrapped once again in the new year.

The first fuel relief Albertans saw was in April, when the provincial fuel tax was cut, saving people 13 cents per litre at the pumps.

In September, the fuel tax was partially reintroduced, bringing the 13-cent saving down to a 4.5-cent per liter saving.

Then, during her address to the province in November, Premier Danielle Smith said her government would suspend the fuel tax for six months.

In an update Tuesday, Dec. 20, Minister of Finance Travis Toews announced that move would start on the first day of 2023.

“Starting Jan. 1, Alberta will be suspending the full provincial fuel tax for six months. This means that Albertans will save 13 cents per litre on gasoline and diesel from January to June,” Toews said in a statement.

Potential savings will vary.

Toews says people driving a pickup truck could save around $440 on average over the next six months, while drivers behind the wheel of a car or SUV could save between $160 and $300.

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The province says savings over the last eight months due to cuts in the fuel tax totalled $850 million.

Toews, who ran against Smith in the United Conservative Party leadership race, says the program will last until July 1.

The province will return to the current system of providing relief based on the Western Texas Intermediate (WTI) oil.

“The measure is just one of a number we’ve brought forward to help Albertans deal with the higher cost of living. It’s relief we’re able to provide thanks to our strong fiscal situation, which is helping us fulfill our commitment to make life more affordable,” Toews said.