Alberta suspends 13-cent fuel tax through end of 2026

Alberta has suspended its full 13-cent-per-litre provincial tax on gasoline and diesel, with the zero-tax rate taking effect Oct. 1 and remaining in place until at least Dec. 31. The earliest the province could fully or partially reinstate the tax is Jan. 1, 2027. The suspension applies to regular and marked gasoline and diesel, although separate taxes remain on products including aviation and locomotive fuel.

The government’s Fuel Tax Relief Program adjusts the levy quarterly according to the average West Texas Intermediate oil price. The tax falls to zero when WTI averages at least US$90 per barrel, rises to 4.5 cents when oil averages between US$85 and US$89.99, and reaches nine cents between US$80 and US$84.99. The full 13-cent tax applies when the benchmark falls below US$80. The program resumed after being temporarily replaced from July through September by Alberta’s one-time $100 Energy Rebate.

For drivers, the government says the suspension should reduce the cost of filling a 50-litre tank by $6.50 compared with the full provincial rate. Actual pump prices will still be shaped by crude-oil costs, refining margins, transportation expenses and retail competition, meaning motorists may not see an exact 13-cent decline from one day to the next. The measure provides immediate affordability relief, but it also leaves provincial revenue more exposed to elevated oil prices and delays a tax normally used to support public services and infrastructure.