The provincial government is taking measures they say will help lower costs for Albertans.

Alberta’s government will temporarily stop the collection of the provincial fuel tax as of April 1. Currently, Albertans pay 13 cents per litre in fuel tax.

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

“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,” said premier Jason Kenney. 

Because the GST also applies to provincial fuel taxes, the 13-cent reduction will 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 federal carbon tax rate on gasoline is set to increase from just under nine cents per litre to just over 11 cents per litre.

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.

Electricity rebate

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. The provincial government says these will be retroactive rebates.

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.