The province has stood by its determination to reinstate the tax in current months
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Alberta’s fuel tax will improve in the beginning of April, including an extra 4 cents per litre to Albertans’ fuel payments, the provincial authorities introduced Thursday.
The Alberta authorities’s 13-cents-per-litre fuel tax can be absolutely reinstated on the finish of the month — up from the nine-cent tax that was reintroduced earlier this 12 months.
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The provincial fuel tax is designed to assist the Alberta authorities make up for decrease royalty revenues when the worth of oil dips, and conversely gives Albertans aid on the pump when oil costs are excessive.
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The province will reassess the fuel tax on the finish of the second quarter, earlier than the start of April.
As such, when the worth of West Texas Intermediate (WTI) averages under $80 per barrel for a 20-day stretch, the complete 13-cent tax is applied. When that worth is between $80 and $85, the tax is trimmed to 9 cents per litre. It’s set at 4.5 cents when oil averages between $85 and $90 and is totally eradicated when oil is $90 or better.
Alberta’s 2024 finances tasks WTI crude costs will common $74 a barrel.
“Albertans will proceed to pay a number of the lowest gas costs within the nation after the gas tax takes impact,” Finance Minister Nate Horner mentioned in a Thursday assertion.
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Framed as an affordability measure, the Alberta authorities put the fuel tax on a six-month pause in January 2023 and prolonged it in mid-June till the top of 2023. It reintroduced the levy at 9 cents per litre this January.
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Affordability Minister Nathan Neudorf mentioned in December that not amassing the tax has materials implications to the province’s finances.
“If you happen to’re not amassing that tax, that has a cloth impression to our finances and our funding in roads and different vital infrastructure,” Neudorf mentioned on the time.
The province has stood by its determination to reinstate the tax in current months, whereas the Alberta NDP has been vital of the choice, saying the measure is punitive to Albertans managing an affordability disaster.
Gasoline costs at most Calgary stations Thursday had been round $1.41 per litre, based on GasBuddy. The newest Statistics Canada knowledge confirmed common fuel in Calgary went for $1.35 in February — the third-lowest within the nation behind solely Edmonton ($1.29) and Winnipeg ($1.25). The nationwide common that month was $1.49.
mscace@postmedia.com
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