Alberta to suspend provincial gas tax starting in October
Posted September 22, 2026 12:49 pm.
Albertans will see some relief at the pumps next month, with the province set to lift its gas tax as energy prices climb.
Starting Oct. 1, Alberta will pause the full 13‑cent‑per‑litre provincial fuel tax on gasoline and diesel through the end of the year.
“We did also hear from Albertans that they’d rather get relief directly at the pumps, and so that’s what we’re going to do,” Premier Danielle Smith said Tuesday.
The government says global conflicts, trade uncertainty, and rising energy prices are putting pressure on household budgets, and the temporary suspension is meant to help residents who rely on transportation.
The province also plans to monitor gas stations to ensure the savings are passed on to consumers. Businesses caught price‑gouging could face fines up to $300,000 or as much as two years in jail.
The government says it will continue watching oil prices and may adjust future relief depending on average oil prices in the next quarterly review.
Smith announced a $100 one-time rebate earlier this year as an alternative to suspending the gas tax at the time. After widespread complaints about the complexity of that rebate system, Finance Minister Jason Nixon says the government is reversing course.
“We’re still in a spot where I’m not 100% sure we can guarantee that it’ll be passed on,” Nixon said, adding the rebate program’s computer system “did not work in a way that I was satisfied with.”
The Alberta NDP says the government is improvising its affordability strategy, pointing to Nixon’s earlier comments this month questioning the value of a tax pause. Party leader Naheed Nenshi suggested internal tensions and the upcoming separation referendum may have influenced the decision.
“What could possibly have changed their minds?” Nenshi said, arguing the shift reflects political pressure rather than policy planning.
The rebate announcement followed Prime Minister Mark Carney’s announcement of a suspension of the federal fuel excise tax that has now been extended until the end of January 2027.
