Strong energy prices support Alberta jobs, our economy, and help fund the programs and services Albertans rely on every day. However, global conflicts, trade uncertainty and increasing energy prices are putting more pressure on people’s wallets. That’s why, starting Oct.1, Alberta will be suspending the full provincial fuel tax, saving families 13 cents per litre on gasoline and diesel every time they fill up until the end of the year.
“We have heard from Albertans who are facing continued high costs at the pump, so we’re taking action to help with the cost. 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.”
“With global uncertainty and prices rising, we are ensuring Albertans have the support they need to address the higher costs of everyday essentials. It’s relief we’re able to provide thanks to our strong fiscal position, helping us make life more affordable.”
Suspending the fuel tax will help relieve the pressure Albertans are feeling today, from workers commuting and parents driving their children to school, to local businesses that rely on the transportation of goods and services.
“Removing the provincial fuel tax delivers meaningful relief when families need it most. We are listening to Albertans, and this is just another way we are building on our ongoing efforts to make life more affordable across our province.”
“With businesses facing rising costs and renewed pressure from U.S. tariffs, suspending Alberta’s fuel tax provides welcome relief. Lower fuel costs will help businesses and consumers manage expenses and remain competitive in an increasingly uncertain environment.”
Albertans already pay the lowest overall taxes in Canada, and this cut adds to that tax advantage. Families here pay the lowest personal income taxes in the country, the second-lowest taxes on fuel, no provincial sales tax and benefit from the new eight per cent tax bracket, which saved Albertans $1.2 billion last year. Suspending the fuel tax builds on that record.
"Premier Danielle Smith's government is doing the right thing by dropping this fuel tax back down 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. 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.”
To ensure fuel tax savings are passed onto Albertans, the province will be monitoring 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.
“As Canada’s largest Meals on Wheels, we safely prepare more than one million nutritious meals annually. Transportation is essential to delivering meals to those in need. Fuel savings help us stretch every dollar further and keep resources focused on feeding vulnerable Calgarians.”
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.
Quick Facts
- 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 (WTI) oil price in the weeks leading up to each change.
- The review period for the quarter beginning on Oct. 1 ran from Aug. 18 to Sept. 15, and the average price of WTI during the review period was $90.54.
- The review period for the quarter beginning on January 1, 2027, runs from Nov. 17 to Dec. 15, 2026.
- To lessen any impact on Albertans, the fuel tax will not increase by more than nine cents per litre each quarter when oil prices fall.
- Albertans can report suspected unfair practices to the Report a Rip-off line at 1-877-427-4088.
- Alberta families currently pay the lowest average fuel prices than anywhere else across the country.
- As of Sept. 21, retail gas prices in Alberta averaged at 175.5 cents/litre.
- If the 13 cents fuel tax was lifted today, Albertans would see average pump prices in the province drop to around 162.5 cents/litre, almost 20 cents less than the next-lowest province.
|
Alberta |
175.5 cents/L |
|
Ontario |
181.0 cents/L |
|
Saskatchewan |
183.6 cents/L |
|
Manitoba |
186.2 cents/L |
|
Canadian average |
189.8 cents/L |
|
Quebec |
192.9 cents/L |
|
New Brunswick |
195.2 cents/L |
|
Nova Scotia |
197.1 cents/L |
|
British Columbia |
197.3 cents/L |
|
Prince Edward Island |
214.9 cents/L |
|
Newfoundland and Labrador |
225.7 cents/L |
*Retail gasoline prices on Sept. 21, by Kalibrate*