Alberta Suspends Fuel Tax in Response to High Oil Prices

After months of calls from residents, the Alberta government has finally agreed to pause its provincial fuel tax on gasoline and diesel. The 13-cent-a-litre tax was set to be suspended starting October 1st and will last until the end of the year. This decision comes as a response to the current high oil prices, which have averaged over $90 per barrel in the past review period.

The Alberta government uses a relief program that introduces quarterly reductions to the provincial fuel tax when the price of West Texas Intermediate (WTI) oil averages at least $80 per barrel. The recent average price of WTI during the last review period was $90.54, exceeding the threshold.

Alberta's Premier Danielle Smith had previously announced a $100 cash rebate in lieu of reducing the tax on gasoline, but it seems that the government has now decided to take a different approach. The province will continue to monitor oil prices and adjust its fuel tax accordingly.