4 Cents Increase in Fuel Tax Starting April 1 | Alberta Fuel Tax Hike

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Key Takeaway Box

Starting April 1, 2024, Albertans will see a fuel tax increase of 4 cents per litre, bringing the total tax to 13 cents per litre. This change is part of the province’s affordability measures linked to the average price of West Texas Intermediate (WTI) oil. The Fuel Tax Relief Program aims to adjust the tax based on oil prices, with the revenue supporting essential services and infrastructure.

Alberta fuel tax hike illustrated with a gas pump showing a +4¢ increase against a backdrop of iconic Alberta scenery.
Fueling Change: Alberta Faces a 4 Cent Fuel Tax Increase from April 1, 2024

Hey there, Hustlers! Are you ready to rev up your engines and dive into the latest buzz about Alberta’s fuel tax? With April 1st just around the corner, it’s time to gear up for some changes at the pump.

What’s Pumping Up the Price?

Alberta’s UCP government is set to increase the provincial fuel tax¹. This move comes as the average price of oil dips below the $80 a barrel benchmark previously set by the government. The tax hike is a lever in the province’s affordability measures, which adjust the fuel tax based on the 20-day average price of WTI leading up to the 15th of the month before the next quarter².

The Numbers Game

Let’s break down the numbers in a way that even the busiest of Hustlers can appreciate:

Average Price of WTI (USD)Fuel Tax Per Litre (CAD)
$79.99 or less13 cents
$80 to $84.999 cents
$85 to $89.994.5 cents
$90 and aboveTax paused
This table shows how the fuel tax rate fluctuates with the international oil prices, ensuring that Albertans are taxed fairly while also contributing to the province’s growth and development.

Where Does Your Tax Go?

The fuel tax isn’t just about filling the government’s coffers; it’s about fuelling the future of Alberta. The projected revenue from the fuel tax for 2024-25 is a hefty $1.4 billion¹. This money is earmarked for improving roads, healthcare, education, and other critical services that keep our province thriving².

The Road Ahead

As we cruise into the future, it’s essential to keep an eye on the road signs. The Fuel Tax Relief Program, introduced two years ago, has already saved Albertans approximately $2 million². The program is reviewed quarterly, ensuring that it remains responsive to the global oil market and the needs of Albertans.

Remember, Hustlers, knowledge is power, especially when it comes to navigating the twists and turns of taxes and finances. Stay informed, stay empowered, and let’s keep hustling towards a brighter future with HustleHub!

For more detailed information and resources, visit HustleHub.


FAQs

Q: When will the new fuel tax rate come into effect?

A: The new rate of 13 cents per litre will be effective from April 1, 2024.

Q: How often is the Fuel Tax Relief Program reviewed?

A: The program is reviewed every quarter to adjust to the changing oil prices.

Q: Where can I find more information about how the fuel tax is utilized?

A: For official details on the fuel tax allocation, visit HustleHub.

IMPORTANT LINKS:


This article is intended for informational purposes only. For financial advice, please consult a professional.

Source: (1) Alberta Fuel Tax Act special notice Vol. 1 No. 50 : increase to Alberta …. https://open.alberta.ca/publications/fuel-tax-act-special-notice-vol-1-no-50. (2) Alberta to increase fuel tax by 4 cents starting April 1. https://globalnews.ca/news/10376342/alberta-to-increase-fuel-tax-by-4-cents-starting-april-1/. (3) Alberta fuel tax to rise four cents per litre in April. https://rdnewsnow.com/2024/03/21/alberta-fuel-tax-to-rise-four-cents-per-litre-in-april/.

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