Alberta Ditches Fuel Tax as Energy Prices Skyrocket

The government of Alberta has announced it will suspend its 13-cent-per-litre fuel tax starting October 1st, 2026. This means drivers in the province will not pay any provincial fuel tax for the last three months of this year.

The decision was made in response to rising energy prices and global conflicts that are putting additional financial strain on households and businesses. Premier Danielle Smith said the government 'has heard from Albertans who are facing high costs at the pump, so we’re taking action to help with expenses.'

The suspension will apply to both gasoline and diesel until the end of the year. According to the government, this move will save drivers, families, and businesses 13 cents per litre every time they fill up for the rest of the year.

Alberta reviews its gasoline and diesel tax every three months, with rates determined based on the average West Texas Intermediate oil price during a specific review period. As of September 21, Alberta gasoline prices averaged 175.5 cents per litre.