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Alberta DailyEst. 2026
BusinessProvince-wide

Alberta suspends fuel tax starting October 1, cutting 13 cents per litre

The provincial government says the move will leave Albertans paying zero provincial tax at the pump for the remainder of the year.

Why it matters

The tax suspension directly lowers pump prices for Alberta drivers, farmers and businesses starting October 1.

Alberta's government is suspending its provincial fuel tax beginning October 1, removing 13 cents per litre from the pump price for the rest of the year. Finance Minister Jason Nixon framed the move as relief for families, seniors, farmers, truckers and small businesses facing persistently high fuel costs, with particular impact in rural areas where residents travel long distances for work, school and health care.

Nixon's column, published by rdnewsNOW, argues the suspension builds on Alberta's broader tax position, which includes no provincial sales tax, no payroll tax, no capital tax and no health care premiums. Last year's introduction of a new 8% personal income tax bracket is cited as saving individuals up to $750 and families up to $1,500 annually, totaling $1.2 billion in savings across the province in 2025.

The piece also states Alberta's corporate income tax rate is roughly 30% lower than any other province, and that Albertans and Alberta businesses would have paid more than $20 billion in additional taxes last year under another province's tax system. Nixon says the fuel tax suspension is possible because the province has controlled debt, built savings and is on track for a sixth consecutive budget surplus this year.

Compiled by the Alberta Daily Desk — an AI-written summary of reporting from the credited sources below, produced and reviewed under our editorial policy.

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Sources: Lethbridge News Now, rdnewsNOW, CHAT News Today, EverythingGP