Kris Sims, Canadian Taxpayers Federation's Alberta Director, stops in Red Deer on Thursday at local Co-Op gas station. (rdnewsNOW/Alessia Proietti)

By Alessia Proietti

Albertans paying lowest in Canada

Canadian Taxpayers Federation stops in Red Deer to share full cost of gas taxes

Aug 17, 2023 | 4:38 PM

The Canadian Taxpayers Federation (CTF) stopped in Red Deer on Thursday to share what they say is the true cost of gasoline taxes in Canada.

The Federation released its 25^th annual Gas Tax Honesty Report to shine a light on what they say are all the hidden taxes that make fuelling up more expensive.

They say that while Albertans pay 31 cents in taxes per litre of gasoline, it is the lowest gas tax rate in Canada.

“Albertans are saving big money by not having any provincial fuel taxes, but Prime Minister Justin Trudeau is set on cranking up his carbon taxes every year for the next seven years,” said Kris Sims, CTF Alberta Director.

Filling up a light duty pickup truck in Red Deer costs about $35 just for gasoline taxes. That same fill-up in Vancouver costs about $88 in taxes. The $53 price difference between the two cities is caused by B.C.’s excise tax, Vancouver’s transit tax and B.C.’s second carbon tax, embedded in fuel regulations.

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Their report states that, in Alberta, a litre of gasoline carries the following taxes, for a total of 31 cents:

• 14.3 cents federal carbon tax
• 10 cents federal excise tax
• 6.7 cents federal sales tax

The Government of Alberta fully suspended the provincial fuel tax in 2022, with current Premier Danielle Smith extending that suspension for the remainder of 2023, saving drivers 13 cents per litre of gasoline and diesel.

READ: Provincial fuel tax suspended until the end of 2023

Sims claims for a light duty pick-up truck, this amount to about $15 in savings per fill.

“Fifteen dollars is a roast chicken and a jug of milk; that matters to people, especially when affordability is such a major issue,” she said, adding she has received increasing calls from working Albertans who are starting to use food banks for the first time.

While Saskatchewan pays the second lowest taxes on fuel at 47 cents per litre, Sims also urged Premier Scott Moe to follow Alberta’s lead and “cut taxes like a girl”.

In 2022, then-Premier Jason Kenney said he would ask the Competition Bureau of Canada to investigate into potential gasoline price fixing in the province as prices remained high despite tax relief.

READ MORE:

Premier Kenney looking into high price of gasoline in the province

Alberta NDP requests audit for gas tax relief program

Nicky Gocuan, Press Secretary for the Office of the Minister of Service Alberta And Red Tape Reduction, confirmed that, to date, the Consumer Investigations Unit at Service Alberta and Red Tape Reduction has not found any incidents of fuel price gouging. She says they continuously monitor gas prices in selected communities across the province, including Red Deer.

“Alberta’s government will continue to use every tool at its disposal to ensure Albertans aren’t being gouged at the gas pumps,” he said in a statement.

He said Albertans can report suspected unfair practices to the Report-a-Ripoff line at 1-877-427-4088 and businesses found guilty of price gouging can be fined by the courts by up to $300,000 or receive up to two years of jail time.

The CTF claims that the federal government is instead planning to increase the carbon tax every year until it hits 37 cents per litre in 2030, with its most recent addition of a second carbon tax that started to roll out in Canada this July.

“It’s tone deaf for the federal government to keep hiking carbon taxes when Canadians can barely afford to fuel up their cars now,” said Sims. “Canadians need relief and that means politicians must scrap their federal carbon taxes that don’t help the environment.”

She elaborated that Canada is the last among the top 10 countries in emitting greenhouse gases, accounting for 1.8 per cent of the share globally. She says efforts should be emphasized internationally with countries like India, the third largest emitter in 2019, who has shown interest in purchasing Canadian natural gas, while efforts locally can focus on carbon capture and other innovative technologies by private companies.

She says Canadians are being penalized with a tax when they can’t afford other options.

“The average working person often doesn’t have the affordable, alternative abundant energy source on demand that’s always reliable and there. They would’ve switched by now; its not like paper or plastic bags,” she said. “Economists would call this an ‘inelastic demand’ on energy; you’re just getting this financial punishment and you’re backed into a corner and there’s nowhere for them to go.”

rdnewsNOW reached out to the federal government and did not receive a response in time for publishing.

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