Alberta will not consider following the federal government's summer fuel tax pause until after its next scheduled review period. Ottawa is set to suspend the federal fuel excise tax, removing up to $0.10 per liter on gasoline and $0.04 per liter on diesel, starting April 20 and lasting until September 7. This measure is part of a summer affordability initiative.
Alberta drivers will have to wait until at least July for potential provincial relief. Finance Minister Nate Horner stated the UCP government will not alter the existing fuel tax relief program to expedite reductions.
Alberta's fuel tax stands at 13 cents per liter for regular gas and four cents for marked gasoline and diesel. Under the province's program, reductions are introduced when West Texas Intermediate (WTI) crude oil averages at least US$80 per barrel over a review period. WTI has been trading around this benchmark, occasionally exceeding US$100.
Alberta's next scheduled fuel tax review is based on the 20 trading days before June 16, with any adjustment taking effect July 1. Horner supports Ottawa's move but maintains the province's quarterly review system provides stability and predictability, arguing that altering the timing would undermine program defensibility.
Advocates and opposition parties argue governments should act more quickly to mitigate the impact of high fuel prices on consumers and businesses. The Canadian Taxpayers Federation praised Ottawa's tax cut as a direct way to ease affordability pressures.
The province introduced its variable fuel tax system in 2022, linking the tax rate to oil prices to balance driver affordability with stable government revenue for infrastructure. Alberta previously suspended its fuel tax for six months at the beginning of 2023 due to inflation.