Nia Williams

CALGARY, Alberta (Reuters – Canada’s oil-producing province Alberta announced Monday that it would reduce its provincial fuel tax. This will help consumers to cope with rising prices.

On April 1, the fuel tax exemption will take effect. It will reduce the cost of petrol by 13 Canadian cents per gallon. However, it will remain in force while the oil price remains at $90 per barrel.

The benchmark U.S. crude oil futures rose to an all-time high of $119 per barrel, before falling back to $119 on Monday. This was after the United States and its European allies considered banning Russian oil imports in response to Moscow’s invasion. [O/R]

Canadian inflation is at its highest level in 30 years. It will likely rise as a result the Ukraine crisis.

Kenney said that this massive tax relief was the result of skyrocketing expenses and would provide Albertans relief when prices go up.

United Conservative Party Leader blamed Federal Liberal Government’s Carbon Price, which rose to $50 per Tonne on April 1st, for placing unnecessary pressure upon consumers.

Alberta projects that the tax relief will be C$1.3 billion ($1.02 trillion) for its Treasury. However, the Alberta oil sands Province is expected to make billions in additional revenue due to higher oil prices than anticipated.

Kenney called upon the U.S. government to reconsider TC Energy’s KXL crude oil pipeline. This was in response to President Joe Biden revoking a key permit.

Canada is fourth in the world for oil production. Most of this oil comes from Alberta. Kenney stated that importing more Canadian barrels would increase U.S. energy security.

Oil sands producers may be reluctant to invest more in order to increase output. TC has launched a trade dispute to recover the costs of KXL.

Calgary-based Company did not immediately reply to my request for comment.

($1 = 1.2806 Canadian dollars)