Alberta Just Dropped Its Fuel Tax & It'll Make Gas Prices So Much Cheaper

Alberta drops its fuel tax in the province on April 1 to help combat “skyrocketing” gas prices — and, no, it's not an April Fools' joke.

Premier Jason Kenney blamed rising fuel costs on “uncertainty caused by Russia’s invasion of Ukraine” and the federal government’s plan to raise the carbon tax by 3 cents per litre from April 1.

“These costs will drive the price of groceries up further as it costs more and more to get delivery trucks from warehouses to stores,” he said.

To combat rising prices, Kenney said Alberta would end the collection of the provincial fuel tax from April 1.

“This means the price at the pump will drop by 13 cents per litre, putting money back into the pockets of Albertans,” Kenney said.

The measures will apply to gas and diesel. The collection of fuel tax will be reviewed by the government on a quarterly basis based on the average price of Western Texas Intermediate over a few weeks. However, collections won’t be reinstated before July 1.

Kenney said the relief is based on "a sliding scale for oil prices."

"When the price of oil is over $90 per barrel, the fuel tax will be removed completely. When the price of oil is less than $80 per barrel, the fuel tax of 13 cents per litre will be in full effect," Kenney said.

Gas prices in Alberta reached over 170 cents per litre in cities in March, with Edmonton reaching 169.9 cents per litre and Calgary reaching 172.9 cents per litre at its peak.