Alberta to Suspend 13-Cent Fuel Tax Starting October 1

Alberta drivers are set to see some relief at the pump this fall.

Starting October 1, the province will suspend its full 13-cent-per-litre fuel tax on gasoline and diesel, with the measure remaining in place through the end of 2026. Alberta says the move is intended to offset rising energy prices and broader economic uncertainty.

As of September 21, Alberta gasoline prices averaged 175.5 cents per litre. The province estimates that removing the tax at current prices would bring the average down to roughly 162.5 cents per litre. For comparison, the Canadian average cited in the release was 189.8 cents per litre.

“We have heard from Albertans who are facing continued high costs at the pump,” Premier Danielle Smith said, adding that the suspension will save drivers, families and businesses 13 cents per litre each time they fill up for the remainder of the year.

The change comes through Alberta’s quarterly fuel-tax system. Gasoline and diesel rates are reviewed on January 1, April 1, July 1 and October 1, with adjustments based on West Texas Intermediate oil prices. During the latest review period, from August 18 to September 15, WTI averaged $90.54.

The province says it will monitor pump prices after the tax is suspended to make sure the savings are being passed on to consumers. Businesses found guilty of price gouging could face court-imposed fines of up to $300,000 or as much as two years in jail. Suspected unfair practices can be reported through Alberta’s Report a Rip-off line at 1-877-427-4088.

Finance Minister Jason Nixon said the government is providing the relief as energy prices rise, while Calgary Chamber of Commerce president and CEO Deborah Yedlin said lower fuel costs could also help businesses facing higher expenses and pressure from U.S. tariffs.

The next fuel-tax review period runs from November 17 to December 15, ahead of the January 1, 2027 adjustment. The province says it will continue monitoring oil prices before deciding what happens after the year-end suspension.