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Alberta Pump Prices Spike with Gas Tax Hike

Author: Paige MacPherson 2015/05/14
  • Recent provincial gas tax hike hits Albertans in their wallets
  • Charging sales tax on top of excise taxes needs to stop; axe the tax-on-tax
  • CTF celebrates 17th annual Gas Tax Honesty Day

CALGARY, AB: The Canadian Taxpayers Federation (CTF) is calling on Alberta’s incoming NDP government to reverse the gas tax increases imposed in the last PC budget in March of this year.

The 4 cents/L tax hike costs the average Albertan an extra $2.69 every time they fill up.

“Every Albertan could buy themselves a coffee and a muffin with their morning fill-up, with the cost of the latest gas tax hike alone,” said CTF Alberta Director Paige MacPherson. “Instead, the government is taking that fuel-up cash from their wallets.”

The CTF is also calling on the federal government to end the practice of applying the HST/GST after provincial and federal excise taxes have already been charged. This “tax-on-tax” was highlighted as part of the CTF’s 17th annual Gas Tax Honesty Day, with press conferences held across the country from Victoria to Saint John.

Back in 2004, as Leader of the Opposition, Stephen Harper said "the fastest and easiest way to give Canadians relief at the pump is for the federal government to stop charging GST on top of gasoline excise taxes. It's time to axe the tax on the tax."

Eliminating this hidden tax would save Canadian drivers a total of $1.5 billion each year.

Alberta’s tax hike also increased the gas tax-on-tax. Albertans are now paying an average of $17.57 in gas taxes with every fill up. Twenty-nine per cent of the pump price is purely taxes. 

"There are lots of drivers who will drive across town to save 3 cents per litre, and yet that savings could be passed on to them instantly if the federal government stopped taxing their own taxes,” said CTF Research Director Jeff Bowes. “Stephen Harper knew this was the right thing to do in 2004 and he should know it’s the right thing to do in 2015.”

The CTF’s annual Gas Tax Honesty Day report shows that taxes make up most of the price difference at the pump from province to province, and even city to city.

The CTF is also calling on the federal government to eliminate the 1.5 cents-per-litre federal “deficit elimination” gas tax. The tax was introduced in 1995 to balance the budget, but when the budget was balanced in 1997 the tax stayed. It survived 11 surpluses between 1997 and 2007.

To read the 2015 Canadian Taxpayers Federation Gas Tax Honesty Day report, click here.

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For more information:

Alberta Director Paige MacPherson
office: 800-661-0187, email: [email protected]

The CTF is Canada's leading non-partisan citizens' advocacy group fighting for lower taxes, less waste and accountable government.  Founded in 1990, the CTF has more than 84,000 supporters and seven offices across Canada.  The CTF is funded by free-will, non tax-receiptable contributions. 


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