Alberta extending fuel tax relief program until end of the year, premier says

Alberta's United Conservative Party government says it's sticking to its campaign promise to extend the fuel tax relief program until the end of the year.

Premier Danielle Smith says the program, which saves Albertans 13 cents per litre at the pumps, was set to expire at the end of this month.

The pause on the provincial fuel tax was first announced by former UCP premier Jason Kenney in May 2022.

Smith says although the West Texas Intermediate benchmark oil price has been below US$90 a barrel, Albertans continue to face affordability challenges due to inflation.

She says it's not just individuals or families that will benefit, but businesses as well.

"This is very welcome news for our customers," said Greg Stahl, the CEO of New West Truck Centres, a dealership that sells semi trucks where the announcement was made.

"On average [they'll] save about $750 per truck per month with this announcement."

Finance Minister Nate Horner says extending the program is to cost $520 million, but the government is cautiously optimistic about Alberta's economy.

The government is set to release its first-quarter fiscal report at the end of August.

"There are a lot of things happening in Alberta's economy that is good news," Horner said at a news conference Monday. "That's why we are able to do this today."