Alberta to pause collection of provincial fuel tax to help consumers shocked by high prices
CBC
The Alberta government will help hard-hit consumers by pausing the collection of its 13-cent per litre provincial fuel tax on April 1, Premier Jason Kenney said Monday.
"This massive tax relief is a response to skyrocketing costs at the pump and is going to provide Albertans with the relief that they need when the cost of everything is going up," Kenney told a news conference.
"Albertans told us they needed relief from rising costs. We've heard them loud and clear. And that's why today we are taking this bold action to soften the blow of inflation, especially on the cost of energy."
The pause in tax collection will apply to gasoline and diesel fuel. The change also will apply to the four-cent per litre provincial fuel tax on marked gasoline and marked diesel.
The pause will remain in effect as long as the benchmark price for West Texas Intermediate (WTI) crude oil remains above $90 US per barrel, Kenney said. Collection of the provincial fuel tax would resume when WTI prices fall below $80 US, he said.
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 WTI over a number of weeks, the province said in a news release.
The government would not start to reinstate collection before July 1, the news release said.
April 1 is the day the federal carbon tax is set to rise again, from just under nine cents per litre to just over 11 cents per litre.
The government will also provide $150 electricity rebates to help Alberta families, farms and small businesses with high electricity bills.
More than one million homes, farms and businesses are expected to receive a $50 monthly rebate for each of the months of January, February and March. The retroactive rebates will be applied directly to energy bills.
The province said it will work with utilities and regulators to determine exact details, including rebate timing.
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