Alberta to suspend fuel tax

Alberta to suspend fuel tax

Published 11:56 am Tuesday, September 22, 2026

Starting Oct. 1, Albertans will save the full 13 cents per litre provincial fuel tax at the pump as global uncertainty pushes energy prices higher.

“We have heard from Albertans who are facing continued high costs at the pump, so we’re taking action to help with the cost,” said Premier Danielle Smith.

“Suspending the provincial fuel tax will save drivers, families and businesses 13 cents per litre every time they fill up for the rest of the year. It’s direct relief that will help Albertans keep more of their hard-earned money.”

Jason Nixon, president of treasury board and minister of finance, said the provincial government is “ensuring Albertans have the support they need to address the higher costs of everyday essentials” amid global uncertainty and rising prices.

“It’s relief we’re able to provide thanks to our strong fiscal position, helping us make life more affordable,” said Nixon.

Kris Sims, Canadian Taxpayers Federation’s Alberta director, said the provincial government is “doing the right thing” by dropping the fuel tax back to zero.

“This will save hard-working Albertans hundreds of dollars over the next few months and save millions for people and businesses across the province,” said Sims.

“This is the right move by Finance Minister Jason Nixon – lowering the cost of fuel makes things more affordable and that’s exactly what people need right now.”

The province stated it will monitor pump prices for “any wrongdoing” and will take action against businesses that price gouge at the pumps. Businesses found guilty of price gouging can be fined by the courts up to $300,000 or receive up to two years of jail time. Albertans can report suspected unfair practices to the Report a Rip-off line at 1-877-427-4088.

Alberta’s government will continue monitoring oil prices throughout the next quarterly review period and, if average oil prices exceed the threshold, will determine the best options to ensure relief reaches Albertans.

“Suspending the fuel tax is one of the many ways Alberta is using its strong financial position to keep costs down and more money in Albertans’ pockets,” the government stated in a media release.

Fuel tax rates for gasoline and diesel are reviewed every three months on Jan. 1, April 1, July 1 and Oct. 1. Rates are based on the average West Texas Intermediate oil price in the weeks leading up to each change.