Albertans see tax hike on gas prices October 1

Albertans will see a partial refund of the provincial fuel tax on the price of gasoline and diesel from Oct. 1, as retailers have been told by the UCP government to collect 4.5 cents per liter.

Retailers were notified of the change through a special notice sent by the county on Sept. 21.

READ MORE: Gas prices fall as Alberta stops collecting gas taxes

Earlier this year, the government suspended the full tax of 13 cents per liter as a way to curb rising fuel prices, and linked that relief to the average price of the US West Texas Intermediate (WTI) – the crude oil price benchmark. .

The government used the average closing price over a four-week period leading up to September 15 to determine that price. Over that four-week period, WTI averaged $89.26.

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The thresholds introduced into the fuel-lighting program ensure Albertans get the full 13 cents per liter when the price averages above $90 a barrel.

Between $85 and $89.99, the fuel tax is set at 4.5 cents per liter. Albertans will be charged nine cents per liter between $80 and $84.99. And for any price under $80 a barrel, the full tax of 13 cents per liter will be reinstated.

“In the first six months of the program, Albertans saved $63 million in fuel taxes,” Treasury Secretary Jason Nixon said in a statement.

Albertans will save more than $200,000,000 over the next three months with a savings of 8.5 cents per liter on fuel tax, he added.

The NDP believes that this tax increase is too early.

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“Albertans are finally seeing a little bit of relief and the government is scribbling that relief back from them,” said NDP energy critic Kathleen Ganley.

The opposition is calling on the government to extend the full cut of 13 cents per liter until the end of January 2023.

Albertans are still struggling with high inflation and high utility prices. We think this little bit of relief they see at the pumps should go to Albertans rather than the provincial government.”

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