Alberta's government and the provincial Treasury Board have voted to extend the fuel tax pause through the remainder of the year. According to estimates by the province, the slashing of the 13 cents per litre fuel tax on both gasoline and diesel will enable residents of the province to save anywhere from $6 and $18 every time they fill up their vehicles.
The province first introduced a pause on fuel taxes in April 2022 and paused taxes again in January of this year. Nate Horner, President of the Treasury Board and Minister of Finance lauded the extension during a press conference on Monday morning.
“These savings have and will continue to have a real impact on the pocketbooks of Albertans. This measure is just one of many to help Albertans with the rising cost of living and it’s relief we can provide thanks to Alberta’s strong fiscal position.”
Alberta's government estimates that to date, Albertans have saved $1.5 billion and the extension will save another $520 million for Albertans.
"Since beginning the program, Alberta families have regularly paid less for gas than Canadians across all other provinces. Currently, Alberta families pay an average of 141.4 cents per litre, well below the Canadian average of 158.8 cents per litre," the province stated in a press release.
Come January 1, 2024, Alberta's government announced that Albertans will continue to benefit from the permanent fuel tax relief program that provides provincial fuel tax savings based on the price of West Texas Intermediate (WTI). According to the province, the following legislated thresholds dictate when the fuel tax is continued or reinstated:
However, the province underlined that when reinstating the tax, the program limits the increase in tax from one quarter to the next to nine cents per litre to, 'reduce price shock to consumers.'
According to the Canadian Automobile Association (CAA), Albertans are currently paying the least when it comes to gas, averaging $1.418 per litre, which is 20 cents less than the national average. British Columbians pay the most when filling up - averaging $1.943 per litre.