Alberta income tax cut still on the table despite oil prices dip
CTV
A provincial income tax cut could be coming for Albertans, along with a reprieve at the pumps, in connection with the price of oil.
A provincial income tax cut could be coming for Albertans, along with a reprieve at the pumps, in connection with the price of oil.
With the summer driving season over and a return to regular routines, the price of West Texas Intermediate (WTI) crude has dropped below $70USD a barrel.
"Our view is that, with the volatility we're getting day to day, we're going to see oil prices hover around where they are now, maybe dipping below $70, then above $70, but averaging next year at around $74 a barrel," said Mark Parsons, ATB’s chief economist.
"This will definitely help at the pumps for consumers. And it's expected just to only add to what we think is going to be further rate cuts by the Bank of Canada."
With the dip in oil price, those at the pump haven't seen the financial payoff just yet, with prices in Calgary still sitting around $1.40 per litre as of Monday.
Parsons says the price drop is due to three factors, including demand in China slowing, tensions and conflict in the Middle East and how quickly OPEC will curtail production back online.
The Alberta government is also tying a major campaign pledge from the last election to the price of oil.
