Alberta gas prices expected to rise further with fuel, carbon tax increases coming in April
Albertans will have to dig a little deeper into their wallets with two separate tax increases set to come into effect at the start of April.
The provincial fuel tax that was suspended from late 2022 through all of 2023 is expected to be fully re-implemented as oil prices sit below $80 USD a barrel.
The province bases the tax on the cost of West Texas Intermediate per barrel averaged over a 20-day trading cycle before the 15th of the month.
With it trading below $80US a barrel, the remaining four cents a litre will be reinstated, if that average remains below the benchmark.
“Being that it's been under $80, then we would (put it back),” said Premier Danielle Smith.
“But remember, it's going to be a permanent program, so that in the event that oil prices go up again about $90, we take the tax off completely. So that's the way the program was designed, is that when it's in that 80 to 90 zone, we want to be able to give a bit of a tax break.”
Smith says her government wants to make the right decision and not rush it with the volatility of the markets.
“We just want to make sure that when we bring the tax back, we'll be assessing it every three months in need to be able to give retailers the opportunity to respond to the changing market conditions,” she said.
April 1 is also when the federal carbon tax on gasoline increases a further three cents a litre from 14 to 17 cents.
Richard Masson, executive fellow with the University of Calgary school of public policy, says the province is tightening its belt when it comes to finances following the release of the budget.
“The oil price they have forecast in this budget is kind of $74 range,” said Masson.
“And if that happens, for every one dollar change in the price of oil, Alberta drops about $630 million of revenue.”
The federal carbon tax is increasing by $15 dollars a tonne.
Masson adds that with the federal carbon tax increasing to 17 cents a litre, it will only become pricier over the next six years.
“By the time it gets to $170 a ton in 2030, the tax will be 37 cents a litre,” said Masson.
“So that's another 20 cents to be added.”
The province says it will provide an update on the fuel tax before the end of the month.
Gas prices are averaging around 148.9 cents per litre throughout the Calgary area on Thursday.
CTVNews.ca Top Stories
Health minister 'deeply appreciative' of doctors but capital gains changes here to stay
Health Minister Mark Holland says while he is 'deeply appreciative' of the work doctors in Canada do, the federal government has no plans to scrap the proposed capital gains tax changes outlined in the latest budget, despite opposition from the Canadian Medical Association.
Have you heard the one about Trump? Biden tries humour on the campaign trail
U.S. President Joe Biden is out to win votes by scoring some laughs at the expense of Donald Trump, unleashing mockery with the goal of getting under the former president's thin skin and reminding the country of his blunders.
Kitchener family says their 10-year-old needs life-saving drug that cost $600,000
Raneem, 10, lives with a neurological condition and liver disease and needs Cholbam, a medication, for a longer and healthier life.
Invasive and toxic hammerhead worms make themselves at home in Ontario
Ontario is now home to an invasive and toxic worm species that can grow up to three feet long and can be dangerous to small animals and pets.
'Do not consume': Gift Chocolate recalled due to undeclared milk, soy
The Canadian Food Inspection Agency has issued a recall for a specific chocolate brand sold in Ontario and Quebec.
Here's where Canadians are living abroad: report
A recent report sheds light on Canadians living abroad--estimated at around four million people in 2016—and the public policies that impact them.
Deadly six-vehicle crash on Highway 400 sparked by road rage incident
One person was killed in a six-vehicle crash on Highway 400 in Innisfil Friday evening.
Murder charge laid after man falls to death from Toronto apartment balcony
One person has been charged with second-degree murder in connection with the death of a man who fell from a balcony following an altercation inside a Toronto apartment building.
Dozens in Italy give a fascist salute on the anniversary of Mussolini's execution
Dozens of people raised their arms in the fascist salute and shouted a fascist chant during ceremonies Sunday to honor Italian dictator Benito Mussolini on the 79th anniversary of his execution.