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EDMONTON — Alberta is suspending its provincial fuel tax starting Oct. 1, a move the government says will save drivers 13 cents per litre on gasoline and diesel through the end of the year.
The province says the full fuel tax will be removed as higher global energy prices, trade uncertainty and international conflicts continue to put pressure on household and business costs.
Premier Danielle Smith says the temporary suspension is intended to provide direct relief to drivers, families and businesses.
“We have heard from Albertans who are facing continued high costs at the pump, so we’re taking action to help with the cost,” Smith said. “Suspending the provincial fuel tax will save drivers, families and businesses 13 cents per litre every time they fill up for the rest of the year.”
The province reviews gasoline and diesel tax rates every three months, with adjustments taking effect Jan. 1, April 1, July 1 and Oct. 1.
Rates are tied to the average West Texas Intermediate oil price during a set review period.
For the quarter beginning Oct. 1, the province says WTI averaged $90.54 during the Aug. 18 to Sept. 15 review period.
Finance Minister Jason Nixon says the government is using Alberta’s fiscal position to provide relief as energy prices rise.
The province says retail gasoline prices in Alberta averaged 175.5 cents per litre as of Sept. 21, below the national average of 189.8 cents.
It estimates removing the 13-cent fuel tax at current prices would bring the provincial average to about 162.5 cents per litre.
The government says it will monitor pump prices to ensure the tax savings are passed along to consumers.
Businesses found guilty of price gouging can face court-imposed fines of up to $300,000 or up to two years in jail.
The next fuel tax review period, for the quarter beginning Jan. 1, 2027, runs from Nov. 17 to Dec. 15.
The province says fuel tax increases will remain capped at nine cents per litre in any single quarter when oil prices fall.
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