Alberta is warning gas retailers that it expects them to pass on savings after the federal government set the consumer carbon tax on fuel to zero, saying companies found guilty of price gouging could face fines of up to $300,000 or two years in jail.
"With the removal of this costly tax, Alberta drivers will save an average of $215 per year at the pumps. Our government expects that retailers will pass these tax savings on to Albertans in full," Service Alberta Minister Dale Nally said Tuesday in a news release.
"We do not want the removal of the federal government’s consumer carbon tax to be a phony tax cut, so we will continue to use every tool at our disposal to ensure Alberta drivers are not being gouged at the pumps."
"We will be monitoring and reviewing pump prices for any wrongdoing, and take action if needed."
"The time has come. After years of relentless pressure from our government, the federal conservatives and other provincial governments across Canada, the federal government has finally scrapped its punishing consumer carbon tax that has wreaked havoc on Canadians’ personal finances."
As previously reported by Discover Airdrie, the change followed a March 15 federal Order-in-Council amending the Greenhouse Gas Pollution Pricing Act to temporarily reduce fuel charge rates on gasoline, diesel and other fuels to zero. While this adjustment halts the consumer fuel charge, the Act itself remains in force, allowing Ottawa to reinstate charges in the future without passing new legislation.
Petroleum analyst Patrick De Haan, speaking to Discover Airdrie prior to the federal change taking effect, said the fuel charge pause could result in significant savings — but warned that broader market forces could still drive prices higher.
"There is already an industrial carbon tax; that is a legitimate question of: will the Canadian federal government decide, depending on who wins the election, whether this carbon tax will be shifted in some way or form?" De Haan said.
He explained that consumers could still feel the impact if the carbon tax burden is moved up the chain.
"Because, if it is somehow moved up the chain, it will likely be funneled back to the end consumer, because oil companies do not make enough to offset a carbon tax," he said. "It would essentially be like your company, paying your taxes on your behalf. It just is unobtainable for oil companies to pay that tremendous amount of tax and be able to survive as a business entity."
As of Wednesday morning, GasBuddy listings showed that regular gas prices in Airdrie had dropped to between 139.9 and 140.9 cents per litre.
Across the province, prices varied widely. The cheapest recorded price in Alberta was in Vegreville, where at least one station was selling regular gasoline for 99.9 cents per litre.
Albertans can report suspected unfair practices to the Report a Rip-off line at 1-877-427-4088.
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