Cabinet and Treasury Board have voted to extend the fuel tax pause through the remainder of the year, fulfilling a promise made by Premier Danielle Smith and the United Conservatives during the recent election campaign.

The rising cost of living is a top concern for Albertans and Alberta’s government remains committed to keeping everyday life more affordable by saving Albertans 13 cents per litre every time they fill up for the remainder of the year. This will help an Alberta family save between $6 and $18 every time they fill up their vehicle.

The fuel tax pause program has provided relief at a time of need and will continue to support Albertans. To date, Albertans have saved $1.5 billion and paid what have often been the lowest fuel prices in the country. Extending the pause will save another $520 million for Albertans.

“We are committed to keeping life affordable for Alberta families. Saving Albertans money when they fill up is Step 1 of this commitment. We will work every day to ensure that Alberta families can put more of their hard-earned money toward their essential needs.”

Danielle Smith, Premier

Alberta’s government first introduced a pause on fuel taxes in April of 2022 and paused taxes again in January to help combat high inflation. Now, Albertans will continue to save the full 13-cent tax on every litre of gas and diesel regardless of oil prices until at least Dec. 31, thanks to another extension of the fuel tax pause.

Since beginning the program, Alberta families have regularly paid less for gas than Canadians across all other provinces. Currently, Alberta families pay an average of 141.4 cents per litre, well below the Canadian average of 158.8 cents per litre.

“These savings have and will continue to have a real impact on the pocketbooks of Albertans. This measure is just one of many to help Albertans with the rising cost of living and it’s relief we can provide thanks to Alberta’s strong fiscal position.”

Nate Horner, President of Treasury Board and Minister of Finance

Alberta’s strong fiscal position allows the government to fund affordability measures like the fuel tax relief program while also continuing to save and build on Alberta’s economic advantage. Effective Jan. 1, Albertans will continue to benefit from the permanent fuel tax relief program that provides provincial fuel tax savings based on the price of West Texas Intermediate (WTI).

With the federal government’s carbon tax increase in April, Albertans are now paying about 31 cents in federal taxes per litre of gas.

Quick facts

• Alberta families currently pay the lowest for fuel across the country:

Source: caa.ca/gas-prices/
Last updated: June 17, 2023

• Alberta’s oil price-based fuel tax relief program will resume in 2024. The program saves Albertans some or all of the provincial fuel tax when average WTI prices exceed legislated thresholds:

• The WTI price average is based on the 20 trading days of price data leading up to the 15th of the month preceding the start of the next quarter.
  • When reinstating the tax, the program limits the increase in tax from one quarter to the next to nine cents per litre to reduce price shock to consumers.