Alberta responds after Canada pauses federal fuel tax
Alberta’s government says the provincial gas tax will remain unchanged following an announcement today that the federal government will temporarily suspend its portion of the fuel tax.
According to Nate Horner, president of the treasury board and minister of finance, the province will continue to follow its existing fuel tax system, which rises or falls based on oil prices.
“If oil stayed elevated at the level it is today, I expect the taxes would come off in a totally dry fashion,” Horner said in the Legislature on Tuesday afternoon.
Under the system, Alberta adjusts its fuel tax every three months using the average price of a barrel of West Texas Intermediate (WTI) oil. When fuel prices are at or above $90, the tax is suspended. When prices drop, the tax gradually returns, with limits on how quickly it can increase.
Horner said the system is designed to provide stability rather than relying on political decisions.
“I think it’s important you don’t count your chickens before they hatch. We’re only a couple of weeks into this fiscal year. We’ll have more to say as the year rolls out, and we’ll continue to monitor,” Horner continued.
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Prime Minister Mark Carney announced in a press conference on Tuesday that the new Liberal majority government will temporarily suspend the federal fuel excise tax from Monday, April 20, to Monday, Sept. 7, 2026.
“We all know that because of the war with Iran, fuel prices have increased sharply around the world, including right here in Canada, so we’re taking more action to help build that bridge over short-term pressure,” stated Carney.
While the minister welcomed the move, Horner said it does not put pressure on Alberta to revisit its own legislation.
“I think the program makes sense, it makes sense from a geo-economic perspective.”
Alberta has previously suspended its fuel tax. The provincial government first introduced a pause in April 2022 in response to rising gas prices due to Russia’s invasion of Ukraine. The pause continued until April 2024.