+ RMA Rural Municipalities
of Alberta

Resolution 24-01F

Rebate on Oil Products Utilized by Municipalities

January 1, 2001
Expiry Date:
December 1, 2004
Active Status:
Vote Results:

WHEREAS municipalities use large quantities of oil products to develop road infrastructure for the citizens of Alberta;AND WHEREAS oil prices have escalated in recent years, causing a burden on municipalities in terms of reduced resources to maintain and enhance our road infrastructure, in a climate of tremendous growth;AND WHEREAS the Province of Alberta receives royalties on this natural resource, that is for the benefit of all Albertans.

Operative Clause:

THEREFORE BE IT RESOLVED that the Alberta Association of Municipal Districts & Counties urge the Government of Alberta to provide a rebate on oil products for municipalities, to ensure that local governments can maintain and enhance their transportation infrastructure in a cost effective manner.

Member Background:

Municipalities use all types of asphalt materials including asphalt cement, cutback asphalt and emulsifiers in the construction and maintenance of their local roads. Asphalt material fixed pricing has increased from $180 per tonne in 1999 to $345 per tonne in 2001. On a typical 20-kilometer base-paving construction project the increased oil prices amount to an additional $275,000, which represents 9.0 percent of the total project cost. On re-oiling maintenance projects the increased oil prices amount to an additional $10.00 per tonne, which represents 30 percent of the total cost. Municipalities have had no other choice than to reduce their construction and maintenance programs and in some cases, return the oiled roads back to gravel.

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