Alberta
Alberta drivers to feel some relief from crushing energy prices
Providing relief for fuel and utility costs
Albertans will see lower fuel and utility bills through action to address rising costs.
Alberta’s government will stop the collection of the provincial fuel tax to offer Albertans relief from current high fuel prices. Currently, Albertans pay 13 cents per litre in fuel tax. This change will come into effect April 1.
The federal carbon tax rate on gasoline is set to increase again on April 1, from just under nine cents per litre to just over 11 cents per litre.
“We’ve heard Albertans’ concerns about the rising cost of living loud and clear. While the federal government is set to increase the carbon tax April 1, Alberta’s government is taking the opposite approach and stepping up to offer relief. Stopping the provincial fuel tax puts money back in the pockets of Albertans when they need it most.”
“Many Albertans expressed concerns about increasing prices on everyday goods when I consulted with them ahead of this year’s budget. The best thing government can do during inflationary times is to spend less, borrow less and tax less. That’s why today we are introducing new measures to help with the cost of fuel by reducing the provincial fuel tax, providing much-needed relief to everyday Albertans.”
Alberta’s government will also provide $150 electricity rebates to help Albertans pay for the high bills they faced this winter. More than one million homes, farms and businesses are expected to receive a $50 monthly rebate for three months. These retroactive rebates will help defray the high costs that many families and businesses paid in recent months.
Alberta’s government will work with utilities and regulators to determine exact details, including rebate timing. This includes working to have the rebates applied directly to consumers’ bills.
This rebate will combine with the Natural Gas Rebate program announced in Budget 2022 to provide real relief for Albertans.
“Utility prices are in part due to market conditions, and in part due to punishing policies from the former provincial government and the federal government. As our government works hard to responsibly manage system costs, we are also working tirelessly to increase generation investments to bring new supply on to the market. As this long-term work continues, a rebate to help offset these costs for Alberta families and small businesses will help provide support when they need it most.”
Collection of the fuel tax will be paused for:
- gasoline – $0.13 per litre
- diesel – $0.13 per litre
- marked gasoline and marked diesel – $0.04
Because the GST also applies to provincial fuel taxes, the 13-cent reduction will also reduce the GST by 0.65 cents per litre, for total tax savings of about 13.6 cents per litre of gasoline and diesel.
The government will review the collection of the fuel tax on a quarterly basis and, if required, consider reinstating collection in stages, based on the average price of West Texas Intermediate (WTI) over a number of weeks. The government will not start to reinstate collection before July 1.
Alberta’s fuel tax is reported and remitted by refiners and large wholesalers and included in the price Albertans pay at the pump. The government will provide information for stakeholders, including fuel retailers, on the fuel tax pause.
Undoubtedly some of the motorists driving past The Whistle Stop Cafe at Mirror on Tuesday morning thought it was an April Fools prank. It wasn’t.
Chris Scott, owner of the gas station at The Whistle Stop Cafe offered a one day promotion on April 1st. Scott sold 8000 litres of regular gasoline for $0.80/ litre.
The promotion was funded by Scott and the Alberta Prosperity Project. In this video posted to his social media, Chris Scott explains why they did it.
From the Canadian Energy Centre
Q&A with Devin Dreeshen, Minister of Transport and Economic Corridors
Devin Dreeshen, Alberta’s Minister of Transportation
and Economic Corridors.
CEC: How have recent developments impacted Alberta’s ability to expand trade routes and access new markets for energy and natural resources?
Dreeshen: With the U.S. trade dispute going on right now, it’s great to see that other provinces and the federal government are taking an interest in our east, west and northern trade routes, something that we in Alberta have been advocating for a long time.
We signed agreements with Saskatchewan and Manitoba to have an economic corridor to stretch across the prairies, as well as a recent agreement with the Northwest Territories to go north. With the leadership of Premier Danielle Smith, she’s been working on a BC, prairie and three northern territories economic corridor agreement with pretty much the entire western and northern block of Canada.
There has been a tremendous amount of work trying to get Alberta products to market and to make sure we can build big projects in Canada again.
CEC: Which infrastructure projects, whether pipeline, rail or port expansions, do you see as the most viable for improving Alberta’s global market access?
Dreeshen: We look at everything. Obviously, pipelines are the safest way to transport oil and gas, but also rail is part of the mix of getting over four million barrels per day to markets around the world.
The beauty of economic corridors is that it’s a swath of land that can have any type of utility in it, whether it be a roadway, railway, pipeline or a utility line. When you have all the environmental permits that are approved in a timely manner, and you have that designated swath of land, it politically de-risks any type of project.
CEC: A key focus of your ministry has been expanding trade corridors, including an agreement with Saskatchewan and Manitoba to explore access to Hudson’s Bay. Is there any interest from industry in developing this corridor further?
Dreeshen: There’s been lots of talk [about] Hudson Bay, a trade corridor with rail and port access. We’ve seen some improvements to go to Churchill, but also an interest in the Nelson River.
We’re starting to see more confidence in the private sector and industry wanting to build these projects. It’s great that governments can get together and work on a common goal to build things here in Canada.
CEC: What is your vision for Alberta’s future as a leader in global trade, and how do economic corridors fit into that strategy?
Dreeshen: Premier Smith has talked about C-69 being repealed by the federal government [and] the reversal of the West Coast tanker ban, which targets Alberta energy going west out of the Pacific.
There’s a lot of work that needs to be done on the federal side. Alberta has been doing a lot of the heavy lifting when it comes to economic corridors.
We’ve asked the federal government if they could develop an economic corridor agency. We want to make sure that the federal government can come to the table, work with provinces [and] work with First Nations across this country to make sure that we can see these projects being built again here in Canada.
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