Gas prices rise as Alberta resumes fuel tax

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Gas pump

The province of Alberta is resuming their fuel surcharge.

After a nearly two-year break, Alberta is again collecting tax on the price of gas. As of Monday, January 1st, there is a nine-cent tax on every liter of gas sold in the province.

The amount of tax charged is linked to the price of West Texas Intermediate Crude. As oil prices drop, the fuel surcharge goes up.

Alberta says the nine-cent tax is still lower than the 13 cents that drivers paid before then Premier Jason Kenney paused the collection in April of 2022, as the cost of fuel soared across Canada.

Provincial Finance Minister, Nate Horner, says the surcharge allows Alberta a stable source of revenue to help offset volatile commodity prices.

The NDP disagrees.

“A tax hike is not the way Albertans want to kick off the new year,” said Kathleen Ganley, Alberta NDP Energy & Climate Critic for Oil and Gas, Natural Gas, Minerals & Hydrogen.

“Alberta families need a little help, and they deserve a government who cares about that. The UCP is too busy lining their own pockets.”

Provincial fuel levies range between 27 cents per liter in the Greater Vancouver Area and 6.2 cents per liter in Yukon. Alberta is now tied with Ontario for the lowest fuel tax among the provinces.

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