Suspend the Fuel Tax

Life in Alberta is expensive. When the U.S. started its conflict with Iran on February 28, it got more expensive. For everyone who needs to use their car to go to work and get around in Alberta, the price of fuel is another household cost that’s hard to bear.

Before the conflict started, the price at the pump for regular gasoline averaged $1.18 per litre. That price included $0.23 per litre in fuel taxes imposed by the federal and provincial governments.

The prices at the pumps around Sherwood Park is over $1.70 per litre on average. That would be $1.80 per litre if the federal government were still taxing fuel. As of April 20, the federal government suspended its fuel tax of $0.10 per litre until Labour Day, September 7. It was a good choice.

The federal government will be collecting more business tax revenue this year than expected because of the higher profits Canadian oil companies are making due to the U.S./Iran conflict. It makes sense to the federal government to help Canadians with the cost of living by suspending the vehicle fuel tax.

I think the provincial government should also suspend its fuel tax. The province of Alberta charges a tax of $0.13 per litre on every litre of gasoline and diesel that is sold in Alberta. It makes sense that the Alberta government should help Albertans with the cost of living by suspending the vehicle fuel tax too.

The Alberta government is going to collect more business tax revenue than expected this year from oil companies. Government revenue from oil royalties is going to be much higher than expected due to the incredibly high price that oil is selling for on the global market. The provincial government can share the wealth with the people it serves.

Albertans are starting to feel like they are being taxed too much, coming and going. They pay a tax at the fuel pump to fill up their vehicle so they can go to work, and pay more tax for the money they are earning to pay for living here in Alberta.

For most people in Alberta, driving a car is not an option, it is essential. We can’t suspend all taxes, but suspending the vehicle fuel tax would be meaningful to everyone who drives. Suspending the fuel tax would be worth it, to make life a little more affordable in Alberta.