Global oil price increases impact fuel taxes and costs

Global oil prices have seen upward pressure, with Brent crude recently climbing above $100 a barrel. This trend is influencing fuel pricing and government policy in several regions.

In Canada, the government of Alberta is set to fully suspend its 13-cent-per-litre fuel tax starting October 1. Meanwhile, the Canadian federal government has extended its own 10-cent-per-litre tax suspension until the end of January, with a plan to gradually phase the tax back in by April 2027. While some political leaders argue these cuts will lower costs for consumers, others, such as NDP leader Avi Lewis, have criticized the moves as costly handouts to oil and gas companies.

In the United Arab Emirates, motorists are awaiting the official October fuel price announcement from the UAE Fuel Price Committee. Current September prices include Super 98 at Dhs3.80 per litre and Diesel at Dhs4.30 per litre. Given that oil prices remained high throughout September, there is potential for an increase in the upcoming monthly rates.