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Abstract
On April 1, 2022, the Government of Alberta stopped collecting the provincial fuel tax in an effort to support Albertans dealing with high fuel prices. The “tax holiday” applies to gasoline and diesel and will last until West Texas Intermediate prices fall below $80 US per barrel. A recent Energy & Environmental Policy Trends quantifies how much Alberta families could benefit from the tax holiday and the cost to the Government of Alberta. This note examines how retail fuel prices have historically responded to changes in fuel taxes and assesses how drivers in Alberta are benefitting from the holiday.
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