Alberta will make its fuel tax relief program permanent next year
Albertans will have some reprieve from high costs in the new year as the provincial government suspends the entire fuel tax for six months — and makes the fuel tax relief program permanent after that.

Rachel Emmanuel

December 30, 2022

Albertans will have some reprieve from high costs in the new year as the provincial government suspends the entire fuel tax for six months — and makes the fuel tax relief program permanent after that.

Alberta will make fuel tax relief program permanent next year.
Alberta will make fuel tax relief program permanent next year.

Under former premier Jason Kenney, the province suspended the fuel tax in the spring when gas prices rose to over $100 US per barrel. The tax was partially reinstated in October as oil prices relaxed.

Alberta Finance Minister Travis Toews announced that the entire 13 cents per litre on gasoline and diesel will be lifted beginning Jan. 1 until June.

“Alberta’s economy has recovered strongly, but Albertans are struggling to heat their homes and feed their families and we want to help. These are meaningful savings that will have a real impact on Albertans’ finances,” Toews said in a statement.

“Reducing the cost of fuel benefits all Alberta drivers. It becomes more affordable to transport goods and products, to go to work and visit loved ones, to run errands and drive children to school.”

Practically speaking, Toews said the announcement means Albertans filling up their pick-up truck once a week would save an average of $440 over the next six months. Those driving a car or SUV would save anywhere from $160 to just over $300.

The province will also make the program of providing fuel tax relief based on the price of West Texas Intermediate (WTI) oil permanent beginning July 1.

“Since April of this year, when we first implemented the fuel tax relief program, Albertans have seen about $850 million in fuel tax savings,” Toews said.

“The measure is just one of a number we’ve brought forward to help Albertans deal with the higher cost of living. It’s relief we’re able to provide thanks to our strong fiscal situation, which is helping us fulfil our commitment to make life more affordable.”

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