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Fuel tax paused by provincial government until the end of the year

Jun 19, 2023 | 12:05 PM

EDMONTON – The fuel tax pause has been voted to be extended through the remainder of 2023. Premier Danielle Smith and her UCP government campaigned on promising to extend the fuel tax pause during their election campaign.

In a statement on Monday, the government stated that they remain concerned about the rising cost of living and remain committed to making the cost of living as affordable for Albertans. According to the Alberta government, this fuel tax pause aims to save Albertans between $6 and $18.

The government projects that extending the fuel tax pause will save Albertans over $500 million.

“We are committed to keeping life affordable for Alberta families. Saving Albertans money when they fill up is Step 1 of this commitment. We will work every day to ensure that Alberta families can put more of their hard-earned money toward their essential needs,” Premier Danielle Smith said in a statement on Monday.

The fuel tax relief was first introduced by the Jason Kenney government in April 2022 and was reintroduced in January of this year to combat high inflation. The 13-cent-a-litre tax will remain for the rest of 2023.

“These savings have and will continue to have a real impact on the pocketbooks of Albertans. This measure is just one of many to help Albertans with the rising cost of living and it’s relief we can provide thanks to Alberta’s strong fiscal position,” Minister of Finance Nate Horner said in a statement released on Monday.

Alberta has the lowest average fuel prices in the country at a provincial average of $1.414 per litre, well below the national average of $1.588 per litre. According to gasbuddy.com, the price at most Medicine Hat gas stations is $1.359, but can be found as low as $1.299.

More information can be found on the Government of Alberta website.