CALGARY — Alberta Premier Danielle Smith has signaled that residents should not expect immediate relief from high fuel taxes. Speaking during her weekly radio program on Saturday, the Premier addressed the rising costs at the pump, where gas prices have climbed to approximately $1.60 per litre. Smith attributed the surge to increasing global crude oil prices driven by international conflicts, specifically citing tensions between the U.S. and Iran, noting that such geopolitical factors remain entirely outside her government’s control.
Under Alberta’s existing fuel tax relief framework, the provincial fuel tax is typically reduced or paused only when the price of West Texas Intermediate (WTI) crude oil averages $90 per barrel or higher. However, Premier Smith pointed out that the province is currently navigating a challenging fiscal landscape, facing an estimated $10 billion deficit for the 2025-26 fiscal year. She emphasized that with the province still recovering from last year’s substantial deficit, the government cannot afford to make hasty financial decisions that might further jeopardize the budget.
The Premier also expressed skepticism regarding the impact of a tax cut, suggesting that a marginal reduction in the provincial fuel tax might not translate into significant savings for the average consumer. Despite the hold on fuel tax relief, Smith highlighted that her government has taken other steps to lower the cost of living, such as pushing for the removal of the federal carbon tax on electricity and home heating to provide some financial breathing room for households.
To ensure that Albertans are not being taken advantage of at the pump, Smith announced that she would instruct Service Alberta Minister Dale Nally to monitor gas stations for potential price gouging. While she acknowledged the difficulty of predicting how long foreign conflicts will continue to inflate energy costs, the Premier assured Albertans that the government would consider additional support measures in the future as provincial revenues improve.
