The Canadian Taxpayers Federation is calling on the Alberta government to scrap its fuel tax as the province projects a $2-billion surplus following a multibillion-dollar surge in resource revenues.“Albertans are fighting to afford basics like food, homes and fuel and this government needs to cut the gas tax now,” said CTF Alberta Director Kris Sims.“This government’s gimmick of a rebate hasn’t worked, and it needs to use this windfall to deliver a direct fuel tax cut now.”Alberta's first-quarter fiscal update projects the province will record a $2-billion surplus in 2026-27.The forecast marks a dramatic turnaround from the provincial budget, which projected a $9.4-billion deficit.The improved financial picture is largely due to resource revenue coming in more than $9.7 billion higher than initially forecast as oil prices exceeded government expectations.Corporate income tax revenue is also projected to be $545 million higher, while other revenues are expected to increase by $1.4 billion.The CTF said the improved finances mean the government should follow through on its fuel tax relief policy rather than relying on rebates.Under Alberta's fuel tax relief program, the provincial tax of 13 cents per litre is supposed to be reduced as West Texas Intermediate oil prices rise above US$80 and US$85 per barrel and eliminated when prices exceed US$90.The government instead introduced a $100 rebate program in July rather than reducing the provincial fuel tax to zero.According to figures cited by the CTF, about 1.2 million Albertans have applied for the rebate despite an estimated 3.4 million people being eligible.“This government needs to quit playing with gimmick rebates and just cut the fuel tax like it said it would,” said Sims.“If the government focuses on cutting waste, balancing the budget and not blowing this surplus money, it can afford this promised gas tax cut.”
