Edmonton gas prices rise again as province plans to stop collecting fuel tax on April 1

Gas prices remained high at Edmonton stations overnight Monday with drivers looking at an average of 163.4 cents per litre.

Similarly, the average fuel price in Calgary jumped from 159.5 cents per litre Monday evening to 165.8 cents Tuesday morning, and is expected to continue trending up.

Experts say the ongoing Russian invasion of Ukraine has cut into the global oil supply, resulting in a sharp rise in prices at the pump for Alberta motorists.

“Suddenly the world is short about three million barrels a day of production,” said Richard Masson, chair of the World Petroleum Council Canada.

“I don’t think this is going to resolve itself any time soon. Russian sanctions are going to last.”

On Monday, the government of Alberta announced it would stop collecting its 13 cent per litre provincial gas tax on April 1 provided the price of West Texas Intermediate oil remains above US$100 per barrel.

WTI closed at US$119 per barrel on Monday and by 9:30 a.m. MT on Tuesday, had ballooned to US$127 per barrel.

The province’s gas tax would be collected again in full when WTI falls below US$80.

The tax will be collected at 4.5 cents per litre when WTI is priced between US$85, and $90 and at nine cents per litre when WTI is priced between US$80 and $85.

Masson says Alberta’s oil resources are limited in what they can do to immediately stop the rise in consumer prices.

“Alberta’s positioned to be helpful but it’s going to take some time,” he said.

“Alberta is going to see a real push to increase production.It’s going to mean more money for governments, more money for companies and probably more jobs.”

Finance Minister Travis Toews said Monday the government will monitor prices at the pump to ensure that savings from the tax cut will be passed on to drivers.

“We will be paying attention to the pricing behaviour of retailers,” Toews said.

Toews conceded the province has no legal means to force gas retailers to reduce their prices following the tax cut but said the government would “put pressure” on providers to do so, adding he was confident motorists would see the savings.

“We’ll be providing enough time so that retailers can effectively be confident that the tax that’s built into their current inventory will be rebated on top of that.”

Also Monday, the province announced a plan to offer a retroactive $150 rebate to most homes and small businesses to defray rising electricity costs.

With files from Austin Lee