NDP calls for extension of gas-tax holiday, provincial audit of gas stations
With gas prices hitting all-time highs in Alberta, NDP energy critic Kathleen Ganley is calling on the provincial government to renew its suspension of the provincial gas tax and to audit gas stations to ensure savings are being passed on to Albertans.
On Monday, according to GasBuddy.com, prices at the pump for unleaded fuel averaged $1.81 per litre in Calgary, with some stations charging as much as $1.91. The average price at the pump was up 2.2 cents over Sunday.
The province froze the 13 cents per litre provincial gas tax at the beginning of April, leading to a drop in average prices in the city to $1.56 from $1.67, and said it would review the program quarterly. The tax freeze is set to thaw on July 1 and Ganley wants to see it extended to Oct. 1.
“That should be a no-brainer,” she said. “The price certainly hasn't come down and there is no indication that it will do so in the near term.”
The provincial tax is completely lifted when West Texas Intermediate is above $90 per barrel and is partly lifted at $80 per barrel. As of 3 p.m. on Monday, WTI was at $118.92.
Despite the record prices for fuelling up, Alberta still has the lowest gas prices in the country.
Dan Mcteague, president of Canadians for Affordable Energy and forecaster for fuel monitoring site gaswizard.ca, is forecasting every other major centre in the country to jump above $2.06 on Tuesday, while Edmonton will jump to $1.89 and Calgary to $1.91.
Justin Brattinga, press secretary for Premier Jason Kenney, defended the province's actions to this point.
“Alberta's government is doing more to ease the inflation burden than any other government in Canada,” he said in an emailed statement.
“It's hypocritical for the NDP to call for lower gas prices when they continue to stand behind Justin Trudeau's plan to quadruple the federal carbon tax.”
Mcteague backed up this sentiment, noting no other province has lifted provincial taxes to this level. Newfoundland and Labrador recently reduced its levy by eight cents a litre, while New Brunswick has instituted a one-time rebate for low-income individuals ($250) and families ($450).
The former Liberal MP shot down the idea of an audit as an expensive, redundant process that can be figured out with a few quick calculations, using the cost of wholesale gas and figuring in other price impacts from refinery costs to taxes and transportation.
“The numbers don't lie; you don't need an auditor (to) tell you that. Grade 1 math usually does it for you,” Mcteague said.
He pointed to federal energy policy that has pushed the cost of gas up 11.7 cents through carbon tax and GST, and also hampered the country's ability to produce gas at a level to take the pressure off global demand.
Mcteague said the federal government is entrenched in its environmental beliefs and does not see it changing its policy, regardless of the effects on the cost of living and inflation. He said the mentality has put greater strains on global demand and has had other repercussions.