Alberta fuel tax set to rise four cents on April 1

By Rob Vogt
Starting on April 1, the fuel tax levied by the Alberta government on fuel will rise four cents to 13 cents per litre.
On March 21, Finance Minister Nate Horner announced that two years ago, the Government of Alberta introduced the fuel tax relief program to help Albertans facing high prices at fuel pumps. Since then, the program has saved drivers more than $2 billion and helped slow the rise of inflation in this province.
He went on to say the fuel tax relief program is designed to save Albertans money when oil prices are high and bring in needed government revenue when oil prices drop. Since oil prices averaged below $80 per barrel during the most recent quarterly review period, the provincial fuel tax for gas and diesel will be 13 cents per litre starting April 1.
“Revenue from the provincial fuel tax helps fund the programs, services and infrastructure Albertans rely on every day. In 2024-2025, fuel tax revenue is forecast at $1.4 billion, which will help fund everything from better roads to improved health care and more supports in the classroom to continue to meet the needs of our growing population,” Horner said.
“Albertans will continue to pay some of the lowest fuel prices in the country even after the fuel tax rate takes effect. As of mid-March, gas prices in Alberta remained 11 cents below the national average and were a full 22 cents lower than when we first announced the fuel tax relief program in March 2022.
“Alberta’s government is committed to following through with the rate schedule we laid out for the fuel tax relief program last year. When oil prices go back up, the fuel tax rate will come back down. If oil prices rise above $79.99 per barrel, the program will kick back in and the fuel tax rate will drop.
“We will continue to review the fuel tax on a quarterly basis and provide another update before the end of June.”
Fuel tax rates for gasoline and diesel are adjusted quarterly, that is Jan. 1, April 1, July 1, and Oct. 1, based on the average price of a barrel of West Texas Intermediate oil:
• The fuel tax will be suspended whenever prices are at or above $90;
• A partial fuel tax of 4.5 cents per litre will be applied whenever prices are $85 to $89.99;
• A partial fuel tax of 9 cents per litre will be applied whenever prices are $80 to $84.99;
• The fuel tax will be fully reinstated at 13 cents per litre whenever prices fall below $80.

Carbon tax increasing April 1

The federal carbon tax is set to rise from $65 per tonne to $80 on April 1, and scheduled to go up another $15 each year until 2030, when it reaches $170 a tonne.
This latest increase translates to a charge of 17 cents per litre on gasoline and 21 cents per litre on diesel fuel.
The cost of natural gas will also increase, with a charge of 15 cents per cubic metre.
The federal government announced it is increasing the amounts of money Canadians receive in rebates as well, beginning with the April 2024 installment.
In Alberta, residents will receive $450 each quarter, an increase of $64.