Fuel costs more in Alberta

So much for holiday cheer.

While the Alberta Government has committed to reinstating the Fuel Tax Relief Program in January, people will still be paying more in taxes in 2024 than 2023.

Fuel taxes are based on the average price of West Texas Intermediate (WTI) crude oil.

"As a result, Albertans will continue to save four cents per litre on gas and diesel in the first three months of 2024, with the fuel tax applied at a reduced rate of nine cents per litre," explained Minister Nate Horner in a press release on December 19th. "After that, Albertans will save some or all of the provincial fuel tax when WTI prices average $80 per barrel or higher in each quarterly review period."

Under the province's Affordability Action Plan, it breaks down how much fuel tax will be implemented at the pump.

When crude oil prices exceed $90 per barrel, the Alberta Government will suspend their 13 cents per litre tax on gasoline and diesel.

If the price of crude oil sits between $85 to $89.99 per barrel, Albertans will be expected to pay 4.5 cents per litre.

When crude oil prices drop down between $80 and $84.99 per barrel, the fuel tax goes up to 9 cents per litre.

Anything below $80 per barrel will see the fuel tax rise to the full 13 cents per litre.

As of December 19th, the cost of WTI is sitting at $73.91.

"Alberta's fuel tax is a predictable source of provincial revenue, helping offset the volatility of other revenue sources," added Minister Horner in the press release. "As a stable component of Alberta's revenue mix, the fuel tax helps fund programs and services Albertans rely on while maintaining our significant tax advantage. The fuels tax relief program ensures we're able to maintain strength in Alberta's finances while continuing to support Albertans and Alberta businesses."

The Alberta Government will give an update on the Tax Relief Program by the end of March.

In response to Canada's Online News Act and Meta (Facebook and Instagram) removing access to local news from their platforms, HighRiverOnline and OkotoksOnline encourage you to get your news directly from your trusted source by bookmarking this page and downloading the HighRiverOnline or OkotoksOnline app.