'Meaningful savings': Alberta government to suspend fuel tax on Jan. 1

The price to fill up your tank in Alberta will drop in the new year, thanks to the UCP government's strategy to suspend the fuel tax.

A statement from Finance Minister Travis Toews on Tuesday outlined the schedule for the plan that will be in effect from Jan. 1 to July 1, 2023.

"This means that Albertans will save 13 cents per litre on gasoline and diesel from January to June," he said.

"These are meaningful savings that will have a real impact on Albertans' finances."

Toews said without the tax, the average Albertan who fills up their pickup truck once a week will save about $440 over the six-month period.

Anyone who drives a car or an SUV could see savings between $160 and $300, he says, adding the benefit will help all residents from every walk of life.

"Reducing the cost of fuel benefits all Alberta drivers. It becomes more affordable to transport goods and products, to go to work and visit loved ones, to run errands and drive children to school."

Once the six months has elapsed – approximately a month after Alberta's general election – Toews says the government will go back to its previous plan of fuel tax relief.

"The program will return to the current system of providing fuel tax relief based on the price of West Texas Intermediate (WTI) oil.

"This system will then remain in place permanently."

However, since the government partially reinstated the 13-cent fuel tax in October, Albertans are only paying approximately 4.5 cents of the levy as of the quarterly adjustment.

That means the actual price drop at the pumps will be much less.

LITTLE ACTION ON SMITH'S INFLATION RELIEF

While concrete details about relief at the pumps may come as welcome news to many Albertans, there hasn't been much more said about Premier Danielle Smith's promise to help families, seniors and low-income Albertans with money in their pockets.

Smith first announced the measure, which would see $600 payments made per child to many parents as well as seniors over a six-month period, during a province-wide address on Nov. 22.

Alberta's Minister of Affordability and Utilities Matt Jones said Dec. 7 some people would receive the relief payments "automatically" while others – namely families and residents who are not on core support programs – would need to apply through a portal.

He said that more details on the program would be coming, but the UCP government has not mentioned anything further about the legislation.

The Alberta legislature can be seen in this file photo.

Despite Smith planning that the government would work right until Dec. 22, the fall legislative session wrapped about a week early on Dec. 15.

During the session, the UCP government passed its Sovereignty Act as well as Bill 2 – the Inflation Relief Statutes Act – along with a handful of other bills. The legislation also received royal assent on the final day.

"Bill 2 required a series of regulatory amendments to accompany the legislation which will assist in providing effective cost of living relief for Albertans, and as those changes are completed, more information will be available," said Andrea Farmer, press secretary for Minister Jones, in an email to CTV News on Tuesday.

Farmer says Albertans will also be seeing "expanded electricity rebates and electricity price protection" in the new year and payments will be coming to eligible Albertans at that time as well.

"We will have more details to share, including how and when, early in the new year," she said.

'FAIL TO PROVIDE REAL RELIEF'

Shannon Phillips, the Alberta NDP's finance critic, says the UCP's relief measures are just "a cynical move to buy votes" and provides little help to Albertans who are struggling with the high costs of inflation.

She adds there are issues with the target measures Smith has announced to help only some Albertans.

"Danielle Smith and the UCP promised to deliver cheques to some Albertans by January — two weeks from now — but we have not seen a system or plan to distribute them," she said.

"Right now, there are more questions than answers about the payments and there is no consideration for the 2 million people left out of this program."

Phillips says the utlity relief from the UCP government also has problems.

"The UCP’s measures to address rising utility bills fail to provide real relief to Albertans. Instead, it is a deferral program akin to a payday lending scheme that kicks the cost down the road and leads to higher bills in the future," she said.

The Alberta government says it has provided residents with approximately $850 million in fuel tax savings.

Starting Jan. 1, Albertans will save 13 cents per litre again on gasoline and diesel. Read an update from Minister Toews on forthcoming changes to the fuel tax relief program: https://t.co/Q5Vu8mv4Xh pic.twitter.com/8iL9Aji2an

— Alberta Finance (@Alberta_Finance) December 20, 2022