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Premier Jason Kenney says the provincial government will be watching “like a hawk” to make sure Albertans get direct relief from the gas tax holiday set to kick in Friday.
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“If they don’t pass on these tax savings, they try to pocket a portion of that, we will be prepared to resort to using legal tools to protect consumers.”
He added that likely won’t be needed, since he expects competitive pressure between gas stations will help motorists get the savings.
The federal carbon tax hike also kicks in on Friday, raising gas prices by a little more than two cents per liter. That will make the expected savings from the provincial tax pause a little less than the full 13 cents per liter.
Gas prices in Edmonton are currently the lowest across the province, according to Natural Resources Canada. Regular gasoline costs $1.64 per liter on average in the capital, while prices in Calgary are nearly four cents higher. But filling the tank is most expensive in Lethbridge, with average prices just shy of $1.70 per liter.
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Russia’s invasion of Ukraine has set markets on edge, and throwing that uncertainty into a strong demand market has sent oil prices soaring.
Canadians for Affordable Energy president Dan McTeague said oil prices have seen “extraordinarily unprecedented volatility” recently, and that’s making gasoline costs even more unpredictable.
“Anybody who thinks they know where oil prices are going is just snowing you. There’s no way you can have any certainty about which way it’s going — there’s just too many moving parts.”
But prices at the pumps have been mostly stable in recent weeks, and McTeague said that’s a product of retailers trying to find balance in a shaky market.
“Through all this volatility, gas stations don’t want to be caught flat-footed. They don’t want to be in a situation where they bought gasoline, taxes in, for $1.55 only to have (prices) drop a day later on the wholesale side and have to sell it for 10 cents less.”
In the near future, McTeague said the carbon tax bump, the switch to more expensive summer-grade gasoline and high demand for gas during the spring and summer will all add up, and drivers should continue to expect to pay more.
Twitter: @meksmith