Return of fuel tax means a 9 cent per litre increase for January 1 in Alberta

A one year pause in collection of Alberta’s fuel tax on gasoline and diesel will come to an end on January 1st.

In a release, the President of Treasury Board and Minister of Finance Nate Horner says ” the provincial oil price-based fuel tax relief program will be reinstated on Jan. 1, which means Albertans will continue to save money at the pumps. The program sets fuel tax rates quarterly based on the average price of West Texas Intermediate (WTI), with a rule limiting rate increases to a maximum of nine cents per litre each quarter.

“As a result, Albertans will continue to save four cents per litre on gas and diesel in the first three months of 2024, with the fuel tax applied at a reduced rate of nine cents per litre. After that, Albertans will save some or all of the provincial fuel tax when WTI prices average $80 per barrel or higher in each quarterly review period.”

Horner says the province will provide another update before the next quarter ends on March 31, 2024.