Drivers may want to consider topping up the tank before Labour Day. Gasoline prices could increase upwards of 10-cents-per litre on Sept. 8 when the Government of Canada reinstates excise taxes on gasoline, diesel and aviation fuel. The tax was suspended in April to combat high prices at the pumps. It will add 10 cents to each litre of gasoline and four cents to each litre of diesel when it comes back into effect. Dany Laferriere, vice president of communications for the Canadian Fuels Association, told CTV News Edmonton the federal tax would be felt “promptly” at the pumps, though a simple 10-cent-across-the-board increase is unlikely. “Gasoline prices reflect several factors moving at the same time,” Laferriere explained. “Including crude oil and wholesale gasoline prices, refinery operations, inventories, transportation, seasonal demand and local competition, which can all impact prices at any given time.” Global conflicts have also pushed up local prices, Richard Masson, former CEO of the Alberta Petroleum Marketing Commission, told CTV News Edmonton. Masson said bombing of Russian refineries and the Iran war have increased demand for fuel in other parts of the world, pulling up prices as Canadian refineries increase exports. “Canadian refineries, if they can get a better price by railing it to the Midwest, they’ll do that,” he said. “We have enough (refining) capacity that we won’t physically be short, but how it gets rationed is higher prices.” On Thursday, the Canadian Taxpayers Federation (CTF) held a press conference in Edmonton calling for an extension on the federal tax break - as well as the nixing of Alberta’s 13-cent provincial fuel tax. “Albertans are fighting to afford these high prices at the pump and the provincial and federal governments both need to drop their fuel taxes now,” CTF Alberta director Kris Sims said. Alberta’s Fuel Tax Relief Program, which lowers or eliminates provincial gas taxes when West Texas Intermediate (WTI) averages rise above $80 a barrel, was suspended for the July to September quarter. Instead, Albertans were offered a one-time $100 energy rebate. The Government of Alberta said in a statement Thursday that more than 1.2 million Albertans applied or were automatically enrolled for the rebate. Applications will remain open until Sept. 30. A new quarter begins in October, said Alberta finance ministry press secretary Juliana Rodriguez. If the WTI exceeds the threshold, she added, the province will decide on a plan to offer relief. “That means either suspending the fuel tax and hoping savings are passed on at the pump or rebating increased oil revenues directly to Albertans,” Rodriguez added. The federal government would not say on Thursday whether an extension of its gas tax break was being considered. “The government will continue to monitor the pressures Canadians are facing in their daily lives and to work with the provinces on measures that lower costs,” said Sarphina Chui, spokesperson for Federal Minister of Finance François-Philippe Champagne. With files from CTV News Edmonton’s Amanda Anderson
