Alberta Suspends Fuel Tax for Savings at the Pump

October 1, 2026

Starting Oct. 1, Albertans will save the full 13 cents per litre provincial fuel tax at the pump as global uncertainty pushes energy prices higher.

Suspending the fuel tax will help relieve the pressure Albertans are feeling today, from workers commuting and parents driving their children to school, to local businesses that rely on the transportation of goods and services.

Albertans already pay the lowest overall taxes in Canada, and this cut adds to that tax advantage. Families here pay the lowest personal income taxes in the country, the second-lowest taxes on fuel, no provincial sales tax and benefit from the new eight per cent tax bracket, which saved Albertans $1.2 billion last year. Suspending the fuel tax builds on that record.

To ensure fuel tax savings are passed onto Albertans, the province will be monitoring pump prices for any wrongdoing and will take action against businesses that price gouge at the pumps. Businesses found guilty of price gouging can be fined by the courts up to $300,000 or receive up to two years of jail time.

Alberta’s government will continue monitoring oil prices throughout the next quarterly review period and, if average oil prices exceed the threshold, will determine the best options to ensure relief reaches Albertans. Suspending the fuel tax is one of the many ways Alberta is using its strong financial position to keep costs down and more money in Albertans’ pockets.

Quick Facts

• Fuel tax rates for gasoline and diesel are reviewed every three months
  • On Jan. 1, April 1, July 1 and Oct. 1.
  • Rates are based on the average West Texas Intermediate (WTI) oil price in the weeks leading up to each change.
• The review period for the quarter beginning on Oct. 1 ran from Aug. 18 to Sept. 15, and the average price of WTI during the review period was $90.54.
  • The review period for the quarter beginning on January 1, 2027, runs from Nov. 17 to Dec. 15, 2026.
• To lessen any impact on Albertans, the fuel tax will not increase by more than nine cents per litre each quarter when oil prices fall.
• Albertans can report suspected unfair practices to the Report a Rip-off line at 1-877-427-4088.
• Alberta families currently pay the lowest average fuel prices than anywhere else across the country.
  • As of Sept. 21, retail gas prices in Alberta averaged at 175.5 cents/litre.
  • If the 13 cents fuel tax was lifted today, Albertans would see average pump prices in the province drop to around 162.5 cents/litre, almost 20 cents less than the next-lowest province.

Alberta	175.5 cents/L
Ontario	181.0 cents/L
Saskatchewan	183.6 cents/L
Manitoba	186.2 cents/L
Canadian average	189.8 cents/L
Quebec	192.9 cents/L
New Brunswick	195.2 cents/L
Nova Scotia	197.1 cents/L
British Columbia	197.3 cents/L
Prince Edward Island	214.9 cents/L
Newfoundland and Labrador	225.7 cents/L

*Retail gasoline prices on Sept. 21, by Kalibrate*

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