Alberta drivers will not pay any provincial fuel tax for the last three months of 2026, as the government has announced the suspension of the 13-cent-per-litre levy starting October 1st. This suspension will apply to both gasoline and diesel until the end of the year.
The government made this decision in response to rising energy prices, global conflicts, and trade uncertainty, which are putting additional financial strain on households and businesses.
“We have heard from Albertans who are facing high costs at the pump, so we’re taking action to help with expenses,” said Premier Danielle Smith.
“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. It’s direct relief that will help Albertans keep more of their hard-earned money.”
Alberta reviews its gasoline and diesel tax every three months, with the rates determined based on the average West Texas Intermediate oil price during a specific review period.
As of September 21, Alberta gasoline prices averaged 175.5 cents per litre. By removing the 13-cent tax at current prices, the provincial average would drop to approximately 162.5 cents per litre. For comparison, the Canadian national average was 189.8 cents per litre, while Ontario averaged 181 cents and Saskatchewan averaged 183.6 cents. Newfoundland and Labrador had the highest price at 225.7 cents per litre.
The province said it will continue monitoring oil prices and decide what measures to take after the temporary suspension expires.
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