Alberta Carbon Tax Repeal | UFA Co-Operative Ltd.

Alberta Carbon Tax Repeal

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May 29, 2019

Alberta’s Carbon Levy will end at 12:01 a.m. on May 30, 2019.

Impacts to UFA customers

Alberta Carbon Levy amounts on major fuels to be repealed:

Type of Fuel 2019 rate ($30/tonne)
Diesel 8.03 ¢/L
Heating/Stove Oil 8.27 ¢/L
Gasoline 6.73 ¢/L
Propane 4.62 ¢/L
Methanol 3.26 ¢/L
Kerosene 7.71 ¢/L

Alberta Farm Fuel Benefit (AFFB) permit holders will not see any impact to their fuel prices; as farmers were already exempt with this permit.

Alberta Carbon Levy Exemption Certificates (CLEC) permits will become obsolete.

Customers will no longer be charged a provincial carbon levy on fuel purchases in Alberta. However, customers can expect implementation of a federal carbon tax shortly after the Alberta carbon levy is repealed.

Federal Fuel Charge

When Alberta’s carbon levy is successfully repealed, the federal government has indicated it will introduce a federal fuel charge (carbon tax) in Alberta as it has done in other provinces. Federal Fuel Charge (Carbon Tax) implementation dates have not been formally outlined but the Federal Government has stated that they will “move as quickly as possible in order to minimize a gap in coverage.”

What UFA is doing

In order to make this transition as smooth as possible, UFA is requesting that the Ministry of Agriculture and Forestry provide advocacy support and endorse our proposal for the federal government to consider allowing farmers in the province of Alberta, who are registered with an Alberta Farm Fuel Benefit (AFFB) permit, to be automatically exempt from the Federal Fuel Charge without having to complete the Federal Fuel Charge Exemption (FFCE) Certificate for farmers. This will save time and money on the part of the farmers, suppliers and the federal government by avoiding substantial administrative work.

UFA will continue to update customers with regard to these tax changes and implications as more information from the Provincial and Federal Governments becomes available.