Alberta Government Suspends Fuel Tax Until Year-End

The Alberta government is suspending the province’s fuel tax for the rest of the year.

Premier Danielle Smith made the announcement Tuesday while addressing business leaders in Calgary. Smith said the average price of Western Texas Intermediate (WTI) crude was $90.54 per barrel last month, triggering a full suspension of the 13-cent-per-litre provincial fuel tax for the quarter beginning October 1.

The province had previously suspended its fuel relief program during the last quarter. However, Smith said Albertans had told the government they would prefer to receive the savings directly at the pump.

In August, the Smith government said higher oil prices, driven in part by tensions in the Middle East, had significantly improved Alberta’s fiscal outlook. A projected $9.4-billion deficit had shifted to an expected surplus of about $2 billion.

Smith said this would mark the Alberta government’s sixth consecutive surplus.

The provincial fuel tax is reviewed every three months, with the next review scheduled ahead of the quarter beginning January 1. According to a provincial media release, if oil prices fall, the fuel tax will not increase by more than nine cents per litre in any single quarter.

Albertans also have until September 30 to apply for the one-time $100 energy rebate.