Albertans to see gas tax hike on October 1

Albertans will see a partial return of a regional fuel tax on the price of gasoline and diesel starting October 1, as the UCP government has asked retailers to start charging 4.5 cents per liter.

Retailers were informed of the change through a special notice sent out by the county on September 21.

Read more: Gas prices drop as Alberta stops collecting gas tax

The government suspended the 13 cents-per-liter tax earlier this year as a way to combat rising fuel prices and tied the easing to the average price of US West Texas Intermediate (WTI) crude – the benchmark for oil prices.

The government used the average closing price over the four weeks to September 15 to determine this rate. Over the four-week period, WTI averaged $89.26.

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With Oil Prices Low, What Happens to Alberta’s Gas Tax Relief Scheme?

With Oil Prices Low, What Happens to Alberta’s Gas Tax Relief Scheme? – August 5, 2022

Thresholds in the Fuel Relief Program have Albertans earn 13 cents a liter when the average price is above $90 a barrel.

Between $85 and $89.99, the fuel tax will be set at 4.5 cents per liter. Between $80 and $84.99, Albertans will be charged nine cents per liter. Any price below $80 per barrel would see a 13 cents per liter tax return.

“In the first six months of the program, Albertans saved $630,000,000 in fuel tax credits,” Treasury Secretary Jason Nixon said in a statement.

“Alberta residents will save more than $200 million over the next three months with a fuel tax savings of 8.5 cents per liter,” he added.

The NDP feels this tax increase is coming too soon.

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“Alberta residents are finally seeing little relief and the government is sort of getting rid of them,” said Kathleen Ganley, an energy critic for the NDP.

The opposition is demanding that the government extend a full 13 cents of savings until the end of January 2023.

Albertans still struggle with high rates of inflation, and suffer from high utility prices. We think that this tiny amount of relief that they see in the pumps should go to the people of Albertans rather than to the provincial government.”

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UCP government scraps fuel tax in Alberta

UCP Government Repeals Alberta Fuel Tax – March 7, 2022

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