Alberta pauses 13-cent fuel tax through year's end
The move replaces a $100 rebate program that drew criticism and saw lower-than-expected uptake, as the province leans on a projected $2-billion surplus.
Why it matters
The tax pause directly affects what Albertans pay at the pump through the end of the year.
Alberta's gas tax holiday began Oct. 1, suspending the province's 13-cent-per-litre tax on gasoline and diesel until the end of the year. The government says the pause is meant to ease cost-of-living pressure, and it comes as high global energy prices boost the province's treasury.
The tax suspension replaces a $100 fuel tax rebate program that started in July; eligible adults have until the end of October to apply. Finance Minister Jason Nixon said only about 1.5 million of the roughly 3.4 million eligible adults had applied as of Wednesday. Premier Danielle Smith acknowledged the rebate program was unpopular, with some critics calling its online application process invasive and onerous.
The province estimates the fuel tax pause will cost $350 million in forgone revenue over three months, more than the rebate program would have cost. The shift follows a projected $2-billion budget surplus, a turnaround from an earlier forecast of a $9.4-billion deficit tied to oil export revenues.
Separately, the federal government has extended its own fuel excise tax relief until the end of January, expected to save drivers up to 10 cents a litre on gas and four cents a litre on diesel. As of Wednesday, GasBuddy pegged Alberta's average gas price at $1.67 per litre, below the national average of $1.77 cited by the Canadian Automobile Association.
Compiled by the Alberta Daily Desk — an AI-written summary of reporting from the credited sources below, produced and reviewed under our editorial policy.