Alberta won’t consider following the federal government in pausing fuel taxes for the summer until after the province’s next scheduled review period begins.
Ottawa is set to suspend the federal fuel excise tax next week, as part of a summer affordability measure.
“This will remove up to $0.10 per liter on gasoline and $0.04 per liter on diesel fuel,” Prime Minister Mark Carney said, adding Ottawa is also pausing the fuel excise tax on aviation fuels.
The suspension is largely due to the ongoing U.S.-Iran war, with movement of shipments along the Strait of Hormuz have mostly been stalled.
It will start on April 20 and last until Sept. 7.
Alberta drivers, however, will have to wait until at least July for the possibility of additional provincial relief.
Finance Minister Nate Horner on Tuesday said the UCP government will not change the existing fuel tax relief program to remove the tax sooner — reiterating his similar response when prices jumped a month ago.
Alberta’s fuel tax is 13 cents per litre for regular gas, and four cents per litre for marked gasoline and marked diesel.
Under Alberta’s relief program, quarterly reductions to the provincial fuel tax are introduced when West Texas Intermediate crude oil averages at least US$80 per barrel over a set review period.
WTI has recently been trading around that benchmark for weeks and has at times topped US$100 a barrel, including a month ago when it hit nearly US$120 per barrel.
When the price of oil goes up, typically gasoline, diesel and other fuel costs rise, too.
Alberta’s next scheduled fuel tax review period is based on the 20 trading days before June 16. Any adjustment resulting from that review would take effect July 1.
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Horner says he supports Ottawa’s move but the province is sticking with its existing fuel tax — at least until July — in part because prices are so unpredictable. He added the quarterly review system provides stability and predictability.
“It takes away the defensibility of the program,” Horner said of altering the timing.
“You build the case in the preceding quarter and then the tax is dealt with in the quarter that follows, and if it comes off, it stays off for the entire quarter.”
How the relief program works, according to the Alberta government:
- The fuel tax will be suspended whenever prices are at or above $90
- A partial fuel tax of 4.5 cents per litre will be applied whenever prices are $85 to $89.99
- A partial fuel tax of nine cents per litre will be applied whenever prices are $80 to $84.99
- The fuel tax will be fully reinstated whenever prices fall below $80
- Fuel tax rates cannot increase by more than nine cents per litre per quarter when oil prices fall
Advocates for dropping the tax argue governments should move quicker, as drivers face high fuel prices and broader affordability pressures.
“Governments need to be seen — of all political stripes, at all levels — to be doing what they can to mitigate the impact,” said Dan McTeague, president of Canadians for Affordable Energy.
The average gas prices in Canada is currently sitting at $1.73 per litre, down from $1.81 on Thursday, according to CAA. at $1.80 on Friday, down two cents a litre compared to Thursday.
The Opposition NDP argues Alberta’s fuel tax, at 13 cents per litre, costs the average family more than $300 a year.
“This isn’t complicated and it isn’t abstract,” said leader Naheed Nenshi.
The NDP argues dropping the tax is one of the fastest and most direct ways the government can ease pressure not just on household budgets, but also for truckers and other businesses.
“It’s immediate help for commuters, parents, seniors, rural families, truckers, delivery workers, and anyone who relies on their vehicle to get to work.
“This is a measure entirely in the provincial government’s control, and a simple decision that would make life a little easier for a lot of people.”
The Canadian Taxpayers Federation praised Ottawa’s move.
“Cutting taxes is the fastest, simplest and easiest way for the government to make life more affordable and ease the pain of high gas prices,” said CTF federal director Franco Terrazzano.
The province introduced its variable fuel tax system in 2022, tying the tax rate to oil prices rather than setting a fixed levy.
The government has said the approach balances affordability for drivers with the need for stable revenue to fund infrastructure and other priorities.
Alberta suspended the fuel tax for six months at the beginning of 2023 to help residents with costs due to inflation. The discount was extended to the end of that year before being reinstated Jan. 1, 2024, as energy prices softened.
Although Canada is a net oil exporter, domestic fuel prices are tied to global benchmarks and reflect international volatility.
At the same time, the Canadian oil patch often benefits from higher global prices, which can boost revenues and investment even as consumers face higher costs at the pump.
The increase also boosts the Alberta government’s bottom line, as resource royalties are a major source of income.
–with files from Adriana Fallico, Global News
© 2026 Global News, a division of Corus Entertainment Inc.
