Alberta Suspends Provincial Fuel Tax for Final Three Months of 2026
Alberta drivers will receive 13 cents per litre in provincial fuel-tax relief starting October 1. This is part of Premier Danielle Smith's announcement to suspend the provincial tax on gasoline and diesel for the final three months of 2026.
The suspension is tied to global uncertainty and higher energy prices, which are putting additional pressure on Albertans' wallets, according to Smith. The normal fuel tax rate is 13 cents per litre in Alberta, but it can be adjusted based on the price of West Texas Intermediate oil.
Before the relief takes effect, there's another deadline worth knowing: September 30 is the last day to apply for Alberta's $100 Energy Rebate. Eligible Albertans who file a 2025 income tax return and have a household with total income of $225,000 or less can claim the rebate.
It's worth noting that the provincial tax removal doesn't guarantee that pump prices will fall exactly 13 cents. The wholesale cost of fuel itself, transportation, and the retailer's margin account for most of the swings in price week to week.