'It's kind of a Twilight Zone moment': Critics question Alberta's plan to reinstate fuel tax in 2024

Alberta is again feeling the pressure to extend its relief at the pumps, but the premier says the full fuel tax holiday needs to come to an end to help the budget.

Alberta's 13 cent per litre fuel tax has been suspended for all of 2023 but will be partially reinstated at nine cents per litre on Jan. 1, 2024.

"I'm concerned now that oil prices are moderating, gas prices are moderating. It reduces our revenues and we have to be looking forward to our next budget year," Premier Danielle Smith told CTV News on Tuesday.

But critics say Alberta, which is projecting a surplus of $5.5 billion, can afford to continue to provide the full fuel tax relief at a time when affordability is a major issue for many Albertans.

"The last thing Alberta taxpayers need is a tax hike on Jan. 1," said Kris Sims with the Canadian Taxpayers Federation.

Sims said Manitoba is still moving ahead with its six-month fuel tax break in the new year and that province has a projected deficit of $1.6 billion.

"Alberta drivers are going to be paying higher fuel taxes than in NDP-controlled Manitoba," she said.

"It's kind of a Twilight Zone moment."

In a statement issued Tuesday, Alberta Finance Minister Nate Horner said possible fuel tax breaks for next year will be evaluated quarterly.

"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 fuel tax relief program ensures we're able to maintain strength in Alberta's finances while continuing to support Albertans and Alberta businesses," part of the statement reads.

An update on possible savings will come before the end of March.