Gasoline prices in Alberta have surpassed $1.75 per litre, as West Texas Intermediate crude oil nears $114 per barrel amid escalating Middle East conflict.
Residents in Calgary and Edmonton report strain on household budgets, with many reconsidering daily commutes.
Finance Minister Nate Horner confirmed provincial fuel tax relief - triggered when WTI averages above $80/barrel over 20 trading days - won’t be enacted until July 1. The current mechanism suspends tax when oil hits $90, but delays response by up to three months to avoid abrupt fiscal swings.
While federal Conservative Leader Pierre Poilievre urges Ottawa to suspend its 25-cent-per-litre fuel excise tax, Horner expressed openness to federal action, noting it could offer broader relief.
However, GasBuddy’s Patrick De Haan warns that tax cuts could worsen price pressures. Reducing disincentives to drive, he says, would spike demand just as global oil supply remains constrained by the closure of the Strait of Hormuz - a critical conduit for 20% of global oil.
Diesel prices could hit record highs in coming days, De Haan added, as summer driving season approaches.
