CALGARY — Alberta drivers will pay no provincial fuel tax for the final three months of 2026 after the Smith government announced it will suspend the 13-cent-per-litre levy beginning October 1.The province said the suspension will apply to gasoline and diesel through the end of the year as higher energy prices, global conflicts and trade uncertainty put additional pressure on household and business costs.“We have heard from Albertans who are facing continued high costs at the pump, so we’re taking action to help with the cost,” 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.”Speaking to a packed house at a Calgary Chamber of Commerce event on Tuesday, Smith told the audience that the decision was made under Alberta’s Fuel Tax Relief Program, which ties the provincial levy to the price of West Texas Intermediate (WTI) crude oil.“That is just underscoring the Alberta advantage that we have and how we want to keep that going,” she said to large applause. WTI averaged $90.54 during the August 18 to September 15 review period used to set the rate beginning October 1.The government said Alberta gasoline prices averaged 175.5 cents per litre as of September 21. Removing the 13-cent tax at current prices would bring the provincial average to about 162.5 cents per litre, according to the province.The Canadian average was 189.8 cents per litre, while Ontario averaged 181 cents and Saskatchewan 183.6 cents. Newfoundland and Labrador had the highest price listed by the province at 225.7 cents.Smith told the crowd at the Hyatt Regency hotel in downtown Calgary that an Alberta driver filling the 136-litre tank of a Ford F-150 would now pay roughly $85 less than a driver in Newfoundland and Labrador, adding that someone filling a 60-litre tank would pay approximately $38 less..OLDCORN / SIMS: Albertans need a fuel tax cut – not a $100 rebate cheque.“With global uncertainty and prices rising, we are ensuring Albertans have the support they need to address the higher costs of everyday essentials,” said Treasury Board President and Finance Minister Jason Nixon said on the decision in an official statement.“It’s relief we’re able to provide thanks to our strong fiscal position, helping us make life more affordable.”The province said it will monitor gasoline prices to ensure the tax reduction is passed on to consumers.Businesses convicted of price gouging can face court-imposed fines of up to $300,000 or as much as two years in jail, the government said.Canadian Taxpayers Federation Alberta director Kris Sims welcomed the decision.“Premier Danielle Smith's government is doing the right thing by dropping this fuel tax back down to zero,” Sims said.“This will save hard-working Albertans hundreds of dollars over the next few months and save millions for people and businesses across the province.”Calgary Chamber of Commerce president and CEO Deborah Yedlin said the suspension would also provide relief to businesses facing higher costs and US tariffs.“Lower fuel costs will help businesses and consumers manage expenses and remain competitive in an increasingly uncertain environment,” she said.The government said the suspension builds on other tax measures, including Alberta's 8% personal income tax bracket, which it says saved taxpayers $1.2 billion last year.The next quarterly fuel-tax review period will run from November 17 to December 15 and determine the rate that would otherwise take effect January 1, 2027.The province said it will continue monitoring oil prices and decide what measures to take after the temporary suspension expires.
