Sask. gas stations in Lloydminster match Alta. side's carbon tax-fuelled prices

When the new year rolled around, the Lloydminster Chamber of Commerce started to get nervous.

Starting Jan.1, Alberta's new carbon tax added 4.5 cents per litre at the gas pump. At first, the business group believed the tax would unfairly drive more traffic to Saskatchewan pumps.

Then something unexpected happened. Instead of cashing in on the extra traffic generated by cheaper gas, stations on the Saskatchewanside of the city raised their prices to mirror those in Alberta.

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"If you check the prices, you'll see that there are only two retail outlets one on the Alberta side and one on the Saskatchewan side that are about two cents a litre cheaper [than average]," said chamber member Rob Saunders. "Right now, there doesn't seem to be much disparity."

Due to Lloydminster's unique position straddling the Alberta-Saskatchewan border, the city's business community is constantly struggling to keep rules as similar as possible for all outlets. Before Alberta's tax was implemented, the local chamber of commerce advocated for a carbon tax exemption for Lloydminster gas stations to keep things stable, which didn't happen.

"We advocate on fairness and a seamless city," said Saunders. "So, with any new tax or levy, we need to be proactive about making sure there's no disparity with our businesses here."

While gas prices seem to be stable, thechamber is still worried about other added expenses to Alberta businesses.

"It's a new cost of doing business in Alberta," Saunders said. "We have to watch really closely as to how this is going to unfold."

Alberta's new carbon tax has raised provincial gas taxes slightly higher than Saskatchewan's. Alberta's provincial taxes now sit at 17.49 cents per litre. In Saskatchewan, provincial taxes sit at 15 cents per litre.