Alberta's Zero-Tax Move Leaves Saskatchewan Businesses at a Disadvantage

The move by Alberta to suspend its provincial tax on gasoline and diesel is putting west central border businesses in Saskatchewan at a disadvantage.

Saskatchewan continues to charge a 15-cent-per-litre provincial tax, while Alberta's rate will drop to zero beginning October 1st and remain that way until at least December 31st. The earliest Alberta could reinstate some or all of the tax is January 1, 2027.

This difference can translate into thousands of dollars in operating costs for fuel-intensive businesses like trucking, oilfield services, construction, and other heavy industries. For example, a Saskatchewan business buying taxable gasoline or clear diesel would face a $15 per 1000 litres provincial fuel tax that an Alberta business does not.

A local trucking company using 50,000 litres of taxable fuel a month in Saskatchewan would pay $7,500 more in provincial fuel tax than an otherwise comparable Alberta operation. At wholesale prices, this can become a significant factor in job bids for companies competing against each other across the border.