EDMONTON – Despite a newly announced federal initiative to lower costs at the pump, the Alberta government has confirmed that its provincial fuel tax of 13 cents per litre will remain in place for the foreseeable future. Finance Minister Nate Horner stated on Tuesday that while he supports Ottawa’s decision to provide relief, the province will not be adjusting its own levy until at least July. Horner cited the inherent volatility of global oil prices as the primary reason for the cautious approach, noting that the province must manage its finances responsibly.
The decision comes at a time of significant global energy instability. A military conflict in the Middle East that began in late February has severely disrupted oil shipments, causing global prices to soar. Under Alberta’s current relief program, the provincial fuel tax is only removed if the West Texas Intermediate (WTI) benchmark price remains at or above US$90 per barrel. While prices hovered just above that mark on Tuesday afternoon, the government insists on observing the average over a longer period before triggering a tax suspension.
Opposition NDP Leader Naheed Nenshi has sharply criticized the government’s stance, calling for the immediate removal of the tax. Nenshi pointed out that gas prices have climbed 40 cents in just one month and accused the United Conservative government of “hoarding” windfall royalty revenues to offset a projected $9.4-billion deficit. He argued that the province needs to be more agile in its response to extraordinary price fluctuations that are costing the average family hundreds of dollars per year.
Premier Danielle Smith defended her government’s record by highlighting broader fiscal measures, such as a personal income tax cut that she claims saves some households up to $1,500 annually—significantly more than a gas tax holiday would. Meanwhile, the federal fuel excise tax break is set to begin this coming Monday, April 20, 2026. That measure is expected to save drivers 10 cents per litre on gasoline and four cents on diesel until Labour Day, as the national average price for fuel currently sits at approximately $1.73 per litre.
