Alberta's gas tax suspended Sunday, but prices are rising once again

Gas prices climb as tax removed The price of gas has been volatile as a provincial gas tax is going away. Timm Bruch reports

Albertans are set to see another change in gas prices starting Sunday.

The province will stop collecting its fuel tax on Jan. 1, which, in theory, should reduce prices at the pumps by about 4 cents a litre.

The government has plans to suspend the levy for six months before reinstating it based on the price of oil beginning in July.

But the pocketbook bump comes after a three-day-jump of more than 10 cents a litre at many Calgary stations this week.

It's renewed outrage among many who are convinced retailers are taking advantage of the system.

Then-Premier Jason Kenney made a similar accusation in the summer after prices spiked before his tax suspension.

"We have no idea what's driving those prices," NDP Energy Critic Kathleen Ganley said. "So what we're worried about is that the savings won't get passed on to Albertans. Because at the end of the day, Albertans need that relief and that's where the money should be going: not to pad bottom lines."

RELEASE FINDINGS: NDP

Ganley and the rest of the opposition are asking the province to release findings from a report on the subject Kenney ordered in July.

"We've been asking the government to take a look and to do an audit so that Albertans can be assured that those savings are actually being passed on," Ganley told CTV News.

Finance Minister Travis Toews wouldn't comment on releasing that report, but did send a statement saying he believes the recent fuel jumps are above board.

"To ensure Albertans are protected, Service Alberta’s Consumer Investigations Unit monitors the marketplace across the province to determine if gas stations are engaging in unfair practices," it read. "Based on this review, they found no incidents of price gouging, as in general, the retail prices between local fuel stations were within reason."

In April, the government suspended its gas tax collection and reduced pump prices by roughly 13 cents a litre. That reduction was dropped by eight cents a litre in October.