LETHBRIDGE, AB: The Canadian Taxpayers Federation is applauding the move by the Alberta government to cut the provincial fuel tax down to zero, saving 13 cents per litre of gasoline and diesel.

“Premier Danielle Smith's government is doing the right thing by dropping this fuel tax back down to zero,” said Kris Sims, Alberta Director for the Canadian Taxpayers Federation. “This will save hardworking Albertans hundreds of dollars over the next few months and save millions for people and businesses across the province.”

Smith announced the provincial fuel tax is dropping down to zero starting Oct. 1 and lasting until Dec. 31, 2026.

The provincial fuel tax in Alberta adds 13 cents per litre of gasoline and diesel.

Alberta’s fuel tax relief program adjusts the provincial fuel tax based on the price of oil.

Once oil prices are more than $90 USD, the entire 13 cent per litre fuel tax is to be suspended. When prices are above $80, partial gas tax cuts are required.

The price for a barrel of oil surpassed $90 USD at the beginning of March, spiking to $112 USD per barrel in April and the price typically remained over $80 USD since.

Fully suspending the provincial fuel tax means drivers would save about $10 when they fill up a minivan and about $15 when they fill up a pickup truck. Big rig truck drivers would save more than $100 when they fill their tanks with diesel.

By suspending the fuel tax on Oct.1, an Alberta family with two vehicles filling up once a week will save about $350 by the end of December. Businesses will also save money with a fuel tax cut because the cost of fuel will be cheaper.

“This is the right move by Finance Minister Jason Nixon because lowering the cost of fuel makes things more affordable and that's exactly what people need right now,” said Sims. “Lower fuel costs means it’s cheaper for people to drive to work and for businesses to ship food and supplies to stores, so this is a win-win for everyone.”

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