Alberta's fuel tax is set to increase on April 1, 2024. (Photo: Korzeniewski | Dreamstime.com)

By David Opinko

Alberta fuel tax to rise four cents per litre in April

Mar 21, 2024 | 2:55 PM

Drivers will soon find themselves paying a little bit more for gas.

The Government of Alberta has confirmed that, on April 1, 2024, the provincial fuel tax will increase from nine cents per litre to 13.

The fuel tax, historically set at 13 cents per litre, was fully suspended for all of 2023. Finance Minister Nate Horner says the tax relief saved drivers in the province more than $2 billion.

On January 1 of this year, the fuel tax was reintroduced at nine cents. It is now being reviewed every quarter and can change based on the average price of West Texas Intermediate oil (WTI).

Horner says, since WTI averaged below $80 per barrel during the most recent review period, there will be a slight increase.

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“Alberta’s government is committed to following through with the rate schedule we laid out for the fuel tax relief program last year. When oil prices go back up, the fuel tax rate will come back down. If oil prices rise above $79.99 per barrel, the program will kick back in and the fuel tax rate will drop,” says Horner.

Fuel tax revenues for 2024-25 are forecast to be approximately $1.4 billion, which the minister states helps to fund “everything from better roads to improved health care and more supports in the classroom to continue to meet the needs of our growing population.”

On the same day that the provincial fuel tax goes up, so will the federal carbon tax. The price of carbon is set to rise by $15 per tonne to $85 per tonne as of April 1.

According to gasbuddy.com, the average cost of regular unleaded fuel in Alberta is $1.43 per litre as of March 21, 2024. Prices are up by an average of 10 cents per litre over the last month and 13.5 cents compared to one year ago.

READ MORE: Alberta fuel tax to partially return in 2024

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