A new grant program from the Alberta government will be aiming to offset the differences in fuel taxes in Lloydminster.
According to an online bulletin from the provincial government, the new grant program will apply to gasoline, diesel, and propane sold on the Alberta side of the city for vehicle use.
“We recognize the unique challenges of fuel dealers in the border community of Lloydminster. Alberta and Saskatchewan have historically aligned fuel taxes in Lloydminster to treat the community as a whole,” said Joe Ceci, the Minister of Finance for Alberta.
“In the past, Saskatchewan offset its charges for fuel sold on its side of the border, this simply continues that practice. Albertans will continue to benefit from an overall tax advantage, by paying $7.5 billion less in taxes than our neighbours to the east.”
The grant program is set to start on April 1, and will cover eligible sales retroactive to January 1, when Alberta’s carbon tax took effect. An annual review of the program will be put in place, and it will be adjusted depending on provincial and federal carbon prices change.
The bulletin states that the grants will cover the equivalent of 2.49 cents per litre of gasoline, 3.35 cents per litre of diesel, and 3.48 cents per litre of propane. It will cost $3 to $5 million in 2017-18, and will be drawn from carbon tax revenue.
Application information for fuel retailers will be posted online closer to the start date of the program.