SASKATOON — Doug Barr is wishing the provincial government would address the current economic situation that’s being felt around the world, caused by Russia’s unprovoked invasion of Ukraine last month.
Since the war, oil prices have skyrocketed with pump prices currently pegged at around $1.78 per litre in the province. Alberta had the lowest price per litre at $1.70 among the 10 provinces while gas cost $2.03 in British Columbia.
Alberta is committing to waive the fuel tax to help the consumers with the rapidly rising cost of gas prices, which often results in basic commodities increases.
Barr, who is running to be the leader of the Progressive Conservative Party of Saskatchewan, is suggesting that Premier Scott Moe follow what Alberta has done to lessen the economic impact of the increasing prices of goods and services, adding that eliminating the fuel tax would save consumers at least 15 cents per litre for gasoline and nine cents for diesel at the pumps.
“I believe we need to call on our provincial government to take immediate action to lower the cost of living for the people of Saskatchewan. Inflation is getting out of hand and fuel in particular is skyrocketing … Mr. Moe recently stated that the provincial government is currently not looking at doing the same [waving the fuel tax],” said Barr.
“We also need to remember that on April 1 the carbon tax increases fuel costs by 11 cents per litre. This will also continue to hurt consumers. I cannot comment on how Alberta made their decision; however, I imagine they saw the impact on their consumers and decided to help reduce the burden.”
Barr believes that eliminating the fuel tax would not significantly affect the province’s revenue as Saskatchewan’s budget estimate for 2021-2022 would earn $477 million from the fuel tax or about 3.3 per cent of the total revenue.
“[The] total estimated revenue is $14.5 billion. Eliminating the fuel tax would affect our provincial income, however, the current estimates assume [World Texas Intermediate] crude oil at $55 per barrel. It’s currently at $107 per barrel which means the province will bring in more royalty income than initially expected,” said Barr.
“I think it’s prudent for the government to support consumers in this challenging time with high inflation. High oil prices are good for Saskatchewan but excessive taxation is not – carbon tax and fuel tax.”
Canada is among the 10 countries that produce 72 per cent of the world’s oil and is the fourth-largest with 5.23 million barrels per day, behind the United States (18.61), Saudi Arabia (10.81) and Russia (10.50).
Canada also exports 40 per cent of its oil to account for a six per cent share of the world’s total. The provinces of Alberta, Saskatchewan and Newfoundland and Labrador produce more than 90 per cent of the country’s oil.
Russian oil only accounts for an 11 per cent share of the world’s total with countries like Belarus, China, Cuba, Curacao, Kazakhstan and Latvia among their biggest customers. In 2019, Russia was the second among the top exporters of crude oil, earning $123 billion.
