Starting today the fuel tax relief program will be reinstated and will be in effect until at least the end of march, depending on the price of oil.
The President of Treasury Board and Minister of Finance Nate Horner issued the following statement on Alberta’s fuel tax relief program:
“On Jan. 1, 2023, Alberta’s government paused the collection of the provincial fuel tax on gasoline and diesel for six months to help keep life affordable. We later extended the pause to the end of 2023 and committed to providing relief after that when oil prices are high.
“The provincial oil price-based fuel tax relief program will be reinstated on Jan. 1, which means Albertans will continue to save money at the pumps. The program sets fuel tax rates quarterly based on the average price of West Texas Intermediate (WTI), with a rule limiting rate increases to a maximum of nine cents per litre each quarter.
“As a result, Albertans will continue to save four cents per litre on gas and diesel in the first three months of 2024, with the fuel tax applied at a reduced rate of nine cents per litre. After that, Albertans will save some or all of the provincial fuel tax when WTI prices average $80 per barrel or higher in each quarterly review period.
“Alberta’s fuel tax is a predictable source of provincial revenue, helping to offset the volatility of other revenue sources. As a stable component of Alberta’s revenue mix, the fuel tax helps fund programs and services Albertans rely on while maintaining our significant tax advantage. The fuel tax relief program ensures we’re able to maintain strength in Alberta’s finances while continuing to support Albertans and Alberta businesses.
“We will provide another update before the next quarter ends on March 31, 2024.”