Albertans to receive $100 rebate as province replaces fuel tax relief program
Posted June 17, 2026 2:28 pm.
Last Updated June 17, 2026 4:27 pm.
Premier Danielle Smith has unveiled a new $100 rebate for millions of Albertans, positioning the one-time payment as the province’s latest effort to help residents manage rising living costs.
The Wednesday announcement, made alongside Finance Minister Jason Nixon and Affordability Minister RJ Sigurdson, marks a shift in the province’s approach that will see the rebate replace Alberta’s fuel‑tax relief program.
Under the new plan, Alberta residents who are 18 or older, have filed a 2025 tax return, and have a household income of $225,000 or less will be eligible to apply for the Energy Rebate through a secure online portal beginning July 1.
Eligible individuals will receive $100, while two‑adult households will receive $200. Families may receive additional $100 payments for each eligible adult family member or child aged 18 or older living in the same home.
The province will continue charging the 13‑cent‑per‑litre provincial fuel tax.
Smith says reductions in gas taxes don’t ensure saving flow to consumers.
“The average Albertan used 2,000 litres of gas a year, and so they would have paid on average $65 in taxes for the past quarter, ” she says.
Nearly 3.4 million Albertans will be eligible for the direct payments, according Smith, meaning the program would be expected to cost more than $300 million.
The announcement comes after months of elevated fuel prices linked to the U.S.–Iran conflict. The province tabled a $4.1 billion deficit for the 2025-26 fiscal year, the government says the final impact of oil prices on the deficit will be detailed in the year‑end fiscal report due before the end of June.
Former Alberta senior economist and Concordia professor Moshe Lander suggests the timing of the announcement is more about boosting the premier’s popularity amid the separation debate.
He says former premier Ralph Klein wanted to leave a legacy by giving out ‘Ralph Bucks’ in 2005, and Smith is hoping to gain favour after the announcement of the separation referendum upset many Albertans.
“Giving money back to people is a way to always win popularity,” he says. “No one’s going to ask question about the deficit or balancing the budget, they are just going to say ‘I’ve got it hard right now, you’ve got extra money, you give it to me.'”
