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Alberta provides relief on fuel and utility costs


March 8, 2022
By Government of Alberta

The province of Alberta is taking steps to lower fuel and utility costs.

Starting April 1, the government will stop the collection of the provincial fuel tax. Currently, Albertans pay 13 cents per litre in fuel tax.

The federal carbon tax rate on gasoline is set to increase on April 1, from just under nine cents per litre to just over 11 cents per litre.

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“While the federal government is set to increase the carbon tax April 1, Alberta’s government is taking the opposite approach and stepping up to offer relief. Stopping the provincial fuel tax puts money back in the pockets of Albertans when they need it most,” says Jason Kenney, Premier of Alberta.

Alberta’s government will also provide $150 in electricity rebates to help Albertans pay for the high bills they faced this winter. More than one million homes, farms and businesses are expected to receive a $50 monthly rebate for three months.

Alberta’s government will work with utilities and regulators to determine exact details, including rebate timing. This includes working to have the rebates applied directly to consumers’ bills.

This rebate will combine with the Natural Gas Rebate program announced in Budget 2022.

Collection of the fuel tax will be paused for:

  • gasoline – $0.13 per litre
  • diesel – $0.13 per litre
  • marked gasoline and marked diesel – $0.04

Because the GST also applies to provincial fuel taxes, the 13-cent reduction will also reduce the GST by 0.65 cents per litre, for total tax savings of about 13.6 cents per litre of gasoline and diesel.

The government will review the collection of the fuel tax on a quarterly basis and, if required, consider reinstating collection in stages, based on the average price of West Texas Intermediate (WTI) over a number of weeks. The government will not start to reinstate collection before July 1.