Alberta Government Slammed for Failing to Cut Fuel Tax Amid $2B Surplus

The Canadian Taxpayers Federation is calling on the Alberta government to cut its fuel tax in light of a projected $2-billion surplus for 2026-27. The federation's Alberta director, Kris Sims, says Albertans are struggling to afford basic necessities like food and homes, and the government needs to use this windfall to deliver a direct fuel tax cut.

The province's updated budget numbers show a significant reversal of finances since the original budget projected a $9.4-billion deficit. The change is due to a more than $9.7-billion increase in resource revenue caused by higher-than-projected oil prices, an additional $545 million in corporate income tax, and a $1.4-billion increase in other revenues.

The Alberta government's fuel tax relief program states that when the price of a barrel of oil exceeds US$80, $85, or $90 per barrel, the 13 cent per litre fuel tax will be reduced or eliminated. However, instead of cutting the tax, the government implemented a $100 rebate program in July.

Only 1.2 million Albertans have applied for the rebate out of 3.4 million who could get it, leading Sims to say that the government should quit 'playing with gimmick rebates' and just cut the fuel tax as promised.