Alberta suspends provincial fuel tax through end of year, saving drivers 13 cents per litre

Alberta will suspend its provincial fuel tax starting October 1 through December 31, saving drivers and businesses 13 cents per litre on every fill-up of gasoline and diesel.

The suspension was triggered by crude oil prices: the American benchmark WTI averaged US$90.54 per barrel during the review period from August 18 to September 15, exceeding the US$80 threshold that triggers quarterly fuel tax reductions. The province reviews fuel tax rates every three months on January 1, April 1, July 1, and October 1.

As of September 21, Alberta's retail gas price stood at 175.5 cents per litre, compared to around $1.82 per litre across Canada. Premier Danielle Smith said the suspension responds directly to Albertans asking for relief at the pumps rather than through cash rebates. "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 to Airdrie Today. "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."

Alberta last suspended the fuel tax for six months at the beginning of 2023, extended it through the end of that year, then reinstated it on January 1, 2024. The province will monitor pump prices for price gouging, with a maximum penalty of $300,000 or up to two years jail time for violations. It will also continue monitoring oil prices throughout the next quarterly review period in January.

In June, Smith had announced a $100 cash rebate instead of reducing the fuel tax, but the decision to suspend the tax directly comes after months of Albertans calling for that measure.