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Alberta set to fully reinstate gas tax after oil prices drop

A woman gasses up at a gas station in Mississauga, Ont., on Tuesday, February 13, 2024. File photo by The Canadian Press/Christopher Katsarov

Gas prices are set to rise in Alberta next month, with the provincial government fully reinstating its fuel tax following a drop in oil prices.

Finance Minister Nate Horner says the fuel tax for gas and diesel will be 13 cents per litre starting April 1, an increase of four cents.

Under the provincial Fuel Tax Relief Program, the tax can be paused or reinstated partially or in full, depending on oil prices.

Fuel tax rates are adjusted quarterly based on the average price per barrel of the benchmark West Texas Intermediate oil.

Horner says Albertans will continue to pay some of the lowest fuel prices in the country even after the increased rate takes effect.

#Alberta set to fully reinstate gas tax of 13 cents a litre after drop in #OilPrices. #ABPoli #FuelTax #GasPrices

He says the tax rate will drop back down if oil prices hit US$80 a barrel or higher.

This report by The Canadian Press was first published March 21, 2024.

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