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

As Alberta drivers prepare to head out for another summer weekend, prices at the fuel pumps are headed lower.

On Friday afternoon, prices for most stations in Edmonton were around 157.9 cents per liter, with at least one station charging as low as 136.9 cents per liter.

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The trend that began to unfold several weeks ago continues.

On July 19, regular pump prices in Edmonton averaged 181.6 cents a liter, in Calgary the average price was 186.1 cents a liter, and in Lethbridge it was 188.9 cents a liter.


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Gas prices drop as Alberta stops collecting gas tax


Gas prices drop as Alberta stops collecting gas tax – April 1, 2022

Part of the reason for the price drop is a similar drop in global oil prices.

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For the first time since February, the price of West Texas Intermediate fell below $90 a barrel in trading this week. The price has been trending lower since early June, when West Texas Intermediate crude exceeded $120 per barrel.

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Alberta to stop collecting fuel tax and announce electricity cuts

Alberta’s current gas tax relief plan is tied to the price of oil, and $90 WTI is one of the thresholds. The discount is reviewed every three months, and is locked in until at least the end of September. In order to change comfort, the government says that the price of WTI will need to average less than $90 for the entire quarter, and there are four levels.

If the average WTI is above $90, the entire 13 cents will be removed from the price at the pump. If WTI averages between $85 and $89.99, the fuel tax will be set at 4.5 cents per liter. If WTI averages between $80 and $84.99, the fuel tax will be set at 9 cents per liter. Any price under $80 would see a 13 cents a liter returned.

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