Opposition wants royalty increase on oil, potash

REGINA – Saskatchewan’s Opposition says the government needs to share more of the wealth coming in from oil prices that continue to surge above what was forecast in the province’s budget.

The NDP is urging the Saskatchewan Party government to raise royalty rates by one per cent when benchmark oil prices exceed US$90 a barrel.

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Finance critic Trent Wotherspoon says that increase — along with a similar one for higher potash prices — would add $250 million to provincial coffers this year alone.

He says they extra revenue would enable the government to send people a cheque to offset inflation and an increased cost of living.

Wotherspoon says it would also allow the government to cancel an expansion of the provincial sales tax this fall and free up money to invest in renewable projects.

Saskatchewan’s 2022-23 budget was calculated on oil prices of US$79 a barrel.

The price of benchmark West Texas Intermediate crude oil closed at US$105 today.

© 2022 The Canadian Press

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