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Albertans will receive 13-cents-per-litre worth of relief at the pumps starting on April 1.
Premier Jason Kenney made the announcement on Monday, noting the full elimination of the provincial gas tax will be activated when the price of West Texas Intermediate is more than $90 per barrel. When the price of WTI is below $80 per barrel the fuel tax will be in place.
WTI is currently hovering around $118 per barrel.
“Here we are, after two years of often having lived apart, isolated as a result of the pandemic restrictions, just when life is starting to get back to normal, and now all of a sudden people are worried about how they are going to pay to fill up their gas tank and buy their groceries,” said Kenney.
Kenney also announced a rebate of $150 that will be applied directly to electricity bills, though there is no real timeline attached to the rebate, just that it will be applied once the government passes the required legislation. The program is expected to cost the province about $270 million.
The rebate program will consist of three $50 monthly rebates to cover high costs during January, February and March. It will be applied right to electricity bills.
“If you pay an electricity bill, you will see this rebate on it,” said Dale Nally, Associate Minister of Natural Gas and Electricity.
Last week, Kenney said he would consider such programs if the federal government delayed the implementation of the carbon tax increase. Prime Minister Justin Trudeau has not committed to any change to the carbon tax program and the increase this year is expected to cost Albertans an additional three cents per litre.
Kenny said this will leave the net difference of about 10 cents per litre.
There is no guarantee that gas will be cheaper, as there is nothing requiring gas stations from leaving prices where they are and collecting the 13 cents tax themselves. Kenney said they will do what they can to pressure them to ensure the savings are there and note market pressures should help in the process as well.
Energy prices continue to skyrocket with the Russian invasion of Ukraine. These impacts will soon be felt in Alberta as retailers are currently selling gas at the rates they purchased it at two or three weeks ago.
This is also accounting for much of the upward pressure on the international natural gas markets as Europe struggles to cut ties with Russia.
Kenney said this should be an impetus for the U.S. and other countries to turn to Canada for oil and gas as opposed to other dictators in Saudi Arabia, Venezuela and Iran.
More to come …
— With files from Dylan Short
Twitter: @JoshAldrich03
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