Alberta Surplus Sparks Call for Zero-Fuel-Tax Rate

Alberta's $2 billion surplus has sparked calls for a fuel tax cut from Kris Sims, Alberta director of the Canadian Taxpayers Federation. The province went from a nearly $9 billion deficit in February to a multi-billion-dollar surplus after the price of oil climbed following the escalation between the US and Iran in March.

The government should 'give it back' to Albertans as a tax cut, according to Sims. She points out that Alberta's own legislation ties fuel tax relief to the price of oil, which has now cleared the threshold. The current provincial fuel tax rate is 13 cents per liter, and Sims argues that Albertans are due for a cut to zero.

Fuel taxes add a significant cost to groceries, as they are factored into the shipping costs, according to Sims. A single shipment can pass through multiple trucks before reaching store shelves, each leg adding fuel tax costs to the final price. With Alberta's surplus and the Bank of Canada holding interest rates steady, Sims believes Albertans are due for a string of wins.