The United Conservative Party (UCP) government will follow through on its campaign promise to pause the fuel tax till the end of the year.
Through this measure, Albertans will continue to save the full 13-cent tax on every litre of gas and diesel regardless of oil prices until at least Dec. 31.
Alberta Premier Danielle Smith said Monday her government is taking action while the cost of living continues to rise.
“While Albertans continue to be burdened by a rising federal carbon tax increasing the cost of groceries and making it more expensive to drive your vehicles, heat your homes or run your businesses, Alberta’s government will do what it can to help families manage,” she said from Calgary.
To date, Albertans have saved $1.5 billion through the fuel tax pause. The government estimates this extension will result in savings of another $520 million.
Alberta’s government first introduced a pause on fuel taxes in April 2022. It again paused taxes again in January to help combat high inflation.
Finance Minister Nate Horner said after Jan. 1, 2024, the government will return to the original program in which Albertans have no tax when oil is over $90 and full tax when oil is under $80. Between $80-$85, there’s a nine cents per litre tax.
Horner said the fuel tax will be reinstated in stages, no matter the price of oil in January.
“We won’t jump right to the 13 cents regardless of the price,” he said. “I believe the way it’s written now the most it could be would be nine cents.”
Smith made the announcement days ahead of her meeting with federal Natural Resources Minister Jonathan Wilkison and Intergovernmental Affairs Minister Dominc LeBlanc. The federal ministers hope to discuss progressing Ottawa’s energy policies, which include plans to impose an emissions cap on Canada’s oil and gas sector and to introduce regulations for a net-zero power grid by 2035.
Smith said she’s “drawn the line” in the sand and Alberta will chart its own pathway to meet a national commitment of being carbon neutral by 2050.
“There is no way we will agree to shutting down our oil and natural gas industry or phasing out our oil and natural gas workers,” she said
The Premier said she wants the province to come up with a working group to discuss how to tackle that.
Smith also said the Treasury Board hasn’t yet approved a new $1.22 billion deal between the province, the City of Calgary and Calgary Sports and Entertainment Corporation, which owns the Flames, to build a new arena. Smith said the parties are still finalizing specific wording, and that the deal is likely to be approved in September.
