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Gas tax returns in Alberta

The Government of Alberta reintroduced gas tax of nine cents per litre on Monday. (Photo by The Associated Press)

Albertans are kicking off 2024 by paying more at the pumps.

On Monday, the Government of Alberta reintroduced the gas tax after pausing it nearly two years ago to combat rising inflation.

Motorists in Alberta can expect to pay a tax of nine cents per litre at the pumps – the government said this rate is cheaper than the 13 cents motorists had paid before the pause.

Alberta Finance Minister Nate Horner said the tax rate is based on the average price of oil.

Should the price of West Texas Intermediate average US$80 per barrel, Albertans can expect to save some or all of the fuel tax, he said.

“Alberta’s fuel tax is a predictable source of provincial revenue, helping to offset the volatility of other revenue sources,” Horner said in a December news release.

The province plans to provide an update on the fuel tax in the spring, he added.

Gas prices in Red Deer were sitting just north of 115 cents as of Monday morning, according to These prices are still among the cheapest in Canada.

Alberta’s NDP issued a release on Monday attacking the gas tax’s reintroduction on New Year’s Day.

“A tax hike is not the way Albertans want to kick off the new year,” said Kathleen Ganley, Alberta NDP energy and climate Critic for oil and gas, natural gas, minerals and hydrogen.

“The UCP spent the legislative session removing limits on the gifts they can receive, and increasing salaries for their friends on boards, but all the people of this province get is a tax hike.”

The Alberta NDP is highlighting a recent survey from TD Canada Trust that found nearly half of Albertans said they would be cutting their spending over the holidays in order to afford necessities like groceries, utilities and rent.

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

Meanwhile, Manitoba decided on Monday to pause its gas tax, meaning motorists won’t have to pay an extra 14 cents per litre for the next six months.

In Ontario, the provincial government is to extend a break on the gas tax to June, so motorists are to continue to pay nine cents per litre. Opposition parties in British Columbia and Saskatchewan have asked for a break on gas taxes, but those provinces have refused to do so.

—With files from The Canadian Press

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Sean McIntosh

About the Author: Sean McIntosh

Sean joined the Red Deer Advocate team in the summer of 2017. Originally from Ontario, he worked in a small town of 2,000 in Saskatchewan for seven months before coming to Central Alberta.
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