The Government of Alberta is suspending provincial fuel taxes until the end of the year.
Premier Danielle Smith made the announcement during an address to Calgary business on Tuesday.
Smith said the price of Western Texas Intermediate (WTI) 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.
Last quarter, the province suspended its fuel relief program in favour of a rebate, but Smith said her government heard Albertans would “rather get relief directly at the pumps.”
“So that’s what we’re going to do,” she added.
Smith’s announcement comes following the Tuesday introduction of federal legislation extending the suspension of federal fuel excise taxes for the rest of the year.
That legislation includes a gradual reintroduction of those taxes, starting with 50 per cent in January before the full amount is collected once more in March.
At the end of August, the Government of Alberta announced its projected $9.4-billion deficit had turned into a possible $2-billion surplus as oil prices surge in response to conflict in the Middle East.
Smith said that puts Alberta in line for its sixth-consecutive surplus.
“With global uncertainty and prices rising, we are ensuring Albertans have the support they need to address the higher costs of everyday essentials,” Finance Minister Jason Nixon said in a media release.
“It’s relief we’re able to provide thanks to our strong fiscal position, helping us make life more affordable.”
Fuel taxes are reviewed every three months. The next review will take place ahead of the next quarter beginning Jan. 1.
The province said in a media release that the fuel tax won’t increase by more than 9-cents-per-litre each quarter should oil prices fall.
It added it would be monitoring prices at the pump for price gouging, which can lead to jail time or fines of up to $300,000.
Albertans have until Sept. 30 to apply for the one-time $100 energy rebate.
