Alberta extends fuel-tax pause through 2023

Premier Danielle Smith and the UCP have followed through on one of their campaign promises — extending the pause on the provincial fuel tax.

The announcement came Monday when Smith was joined by recently appointed finance minister Nate Horner and minister of affordability and utilities Nathan Neudorf at a heavy truck dealership in Calgary.

The continued pause will keep the price at the pumps 13 cents lower for the rest of 2023, the government said.

The province said this will help the average Alberta family save between six and $18 every time they fill up.

“We are committed to keeping life affordable for Alberta families. Saving Albertans money when they fill up is Step 1 of this commitment. We will work every day to ensure that Alberta families can put more of their hard-earned money toward their essential needs,” Smith said.

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Alberta’s fuel tax was first suspended by the UCP in January, as part of its efforts to curb the rising cost of living. It was set to expire on June 30.

Horner said the pause will continue until Dec. 31 regardless of oil prices. This will change in the new year, when a permanent fuel tax relief program comes into effect. Savings will range based on the price of West Texas Intermediate (WTI).

Since beginning the program, Alberta families have regularly paid less for gas than Canadians across all other provinces, the government claims.

It adds that Alberta families pay an average of 141.4 cents per litre, while the Canadian average sits at 158.8 cents per litre.

Following an increase to the federal carbon tax in April, Albertans now pay about 31 cents of federal taxes per litre, the province says.