Alberta

Alberta to stop collection of provincial fuel tax to offer Albertans relief from current high fuel prices

News Release
Providing relief for fuel and utility costs
*Albertans will see lower fuel and utility bills through action to address rising costs.

Alberta’s government will stop the collection of the provincial fuel tax to offer Albertans relief from current high fuel prices. Currently, Albertans pay 13 cents per litre in fuel tax. This change will come into effect April 1.

The federal carbon tax rate on gasoline is set to increase again on April 1, from just under nine cents per litre to just over 11 cents per litre.

“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.”

Jason Kenney, Premier
“Many Albertans expressed concerns about increasing prices on everyday goods when I consulted with them ahead of this year’s budget. The best thing government can do during inflationary times is to spend less, borrow less and tax less. That’s why today we are introducing new measures to help with the cost of fuel by reducing the provincial fuel tax, providing much-needed relief to everyday Albertans.”

Travis Toews, President of Treasury Board and Minister of Finance
Alberta’s government will also provide $150 electricity rebates to help Albertans pay for the high bills they faced this winter. More than one million homes, farms and businesses are expected to receive a $50 monthly rebate for three months. These retroactive rebates will help defray the high costs that many families and businesses paid in recent months.

Alberta’s government will work with utilities and regulators to determine exact details, including rebate timing. This includes working to have the rebates applied directly to consumers’ bills.

This rebate will combine with the Natural Gas Rebate program announced in Budget 2022 to provide real relief for Albertans.

“Utility prices are in part due to market conditions, and in part due to punishing policies from the former provincial government and the federal government. As our government works hard to responsibly manage system costs, we are also working tirelessly to increase generation investments to bring new supply on to the market. As this long-term work continues, a rebate to help offset these costs for Alberta families and small businesses will help provide support when they need it most.”

Dale Nally, Associate Minister of Natural Gas and Electricity
Collection of the fuel tax will be paused for:

gasoline – $0.13 per litre
diesel – $0.13 per litre
marked gasoline and marked diesel – $0.04
Because the GST also applies to provincial fuel taxes, the 13-cent reduction will also reduce the GST by 0.65 cents per litre, for total tax savings of about 13.6 cents per litre of gasoline and diesel.

The government will review the collection of the fuel tax on a quarterly basis and, if required, consider reinstating collection in stages, based on the average price of West Texas Intermediate (WTI) over a number of weeks. The government will not start to reinstate collection before July 1.

Alberta’s fuel tax is reported and remitted by refiners and large wholesalers and included in the price Albertans pay at the pump. The government will provide information for stakeholders, including fuel retailers, on the fuel tax pause.

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