Alberta extends fuel tax relief as provincial inflation rate climbs to 7.1%
CBC
Alberta's provincial government says it will extend its fuel tax relief program until September — an announcement that came as new data revealed that inflation in the province climbed to 7.1 per cent in May.
The United Conservative government said Wednesday that it continue to hit pause on the collection of its 13-cent per litre provincial fuel tax, extending a program that went into effect on April 1.
"We're helping Albertans save money through the fuel tax relief program at a time of need," Premier Jason Kenney said in a statement.
"While fuel prices have continued to increase nationwide, Albertans still pay considerably less than their provincial neighbours."
The government said it will evaluate the program quarterly and reinstate it in stages only if the average price of West Texas Intermediate (WTI) crude oil fell below $90 per barrel.
For the four-week period ending June 15, WTI averaged $115.88 per barrel, according to the province.
The government will re-evaluate the program in September.
The province announced its plans Wednesday as Statistics Canada data showed that inflation in Alberta reached 7.1 per cent in May, up from 6.3 per cent in April, driven in large part by rising transportation costs.
"In Alberta, inflation accelerated to 7.1%, due to a rise in gasoline prices," wrote Charles St-Arnaud, chief economist with Alberta Central, the central banking facility for the province's credit unions, in an analysis Wednesday.
"As it is the case nationally, most of the inflation is due to higher energy costs (gasoline, electricity and natural gas), homeownership cost, motor vehicles and food prices.
"We note that both headline and core inflation for the province remains slightly lower than in the rest of the country and it has been the case since October 2020."
Canada's inflation rate for the same month reached 7.7 per cent — its highest point since 1983. Compared to other provinces, Alberta's rate was near the lowest, second only to Saskatchewan's seven per cent.
More to come
This First Person column is the experience of Shannon Flaman, who lives in Red Deer, Alta. For more information about CBC's First Person stories, please see the FAQ.
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