Alberta Premier Jason Kenney announced his plan to slash the gas tax, pausing the current 13 cents per litre tax on gasoline when prices exceed $90 per barrel in the North American market.
Kenney says that this rebate will work on a sliding scale and will not apply when prices are less than $80 per barrel and that the changes will take effect on April 1.
This pause will also apply to diesel, and marked gasoline and marked diesel, which have a $0.04 gas tax.
“We’ve heard Albertans’ concerns about the rising cost of living loud and clear. While the federal government is set to increase the carbon tax April 1, Alberta’s government is taking the opposite approach and stepping up to offer relief. Stopping the provincial fuel tax puts money back in the pockets of Albertans when they need it most,” said Kenney.
According to Business Insider stats, oil sits at approximately $118 per barrel at the time of writing.
With that said, Kenney adds that as many gas stations and other fuel providers have already purchased their fuel at the previous price, it may take two or three weeks for prices to drop back down. Kenney further states that he will be working with those fuel providers to expedite the process so that Albertans can see fuel prices drop as soon as possible.
While speaking at a press conference, Kenney also took aim at the US’s decision to run to Venezuela and Saudi Arabi for oil as they move away from Russian war oil rather than Canada, which guarantees higher standards in terms of using green technology and human rights.
Kenney believes that if the US gave the go-ahead, the Keystone XL pipeline could be resumed and finished by the first quarter of 2023, ending the US’s reliance on conflict oil from countries with dubious if not outright horrific human rights records.