Alberta Suspends Fuel Tax to Ease Pain at the Pump

Alberta drivers will soon see some relief at the pump as the province plans to suspend its full 13-cent-per-litre fuel tax on gasoline and diesel starting October 1. The measure, which remains in place through the end of 2026, aims to offset rising energy prices and broader economic uncertainty.

As of September 21, Alberta's average gasoline price was 175.5 cents per litre, according to Kalibrate. Removing the tax at current prices would bring the average down to roughly 162.5 cents per litre, a savings of approximately $12.50 for every fill-up.

The province estimates that this relief will benefit both drivers and businesses, which are facing higher expenses due to rising energy costs and U.S. tariffs. Finance Minister Jason Nixon said the government is providing the relief as energy prices rise, while Calgary Chamber of Commerce president Deborah Yedlin noted that lower fuel costs could help businesses facing pressure from these external factors.

The province will continue monitoring oil prices before deciding what happens after the year-end suspension. Businesses found guilty of price gouging could face court-imposed fines of up to $300,000 or as much as two years in jail.