Alberta Suspends Fuel Tax Amid High Oil Prices

The Government of Alberta has announced that it will suspend provincial fuel taxes until the end of the year, starting October 1st. The suspension is in response to high oil prices, which have averaged $90.54 per barrel over the last month, triggering a full suspension of the 13-cent provincial fuel tax for the quarter beginning Oct. 1.

Premier Danielle Smith made the announcement during an address to Calgary business on Tuesday, saying that Alberta has heard from residents who prefer direct relief at the pumps rather than a rebate. The province's portion of the fuel tax will be dropped, lowering gas prices by 13 cents per litre.

The decision comes after the federal government introduced legislation extending the suspension of federal fuel excise taxes for the rest of the year, with a gradual reintroduction starting in January and returning to full amount in March. Alberta's Finance Minister Jason Nixon said that the province is able to provide relief due to its strong fiscal position, which has turned a projected $9.4-billion deficit into a possible $2-billion surplus.

The fuel tax will be reviewed every three months, with the next review taking place ahead of the next quarter beginning January 1. The province also warned that it will monitor prices at the pump for price gouging, which can lead to jail time or fines up to $300,000.