Alberta Premier Danielle Smith says her government is axing its fuel tax for three months to help ease pump prices.
Smith says starting Oct. 1, drivers will save 13 cents a litre on gasoline and diesel.
“Every fill-up will cost Alberta families and businesses less,” she announced Tuesday during a speech to the Calgary Chamber of Commerce.
What has the government done to address affordability issues so far?
In June, the province decided to not cut the gas tax at the pumps. Instead, it offered $100 affordability cheques to most Albertans.
At the time, Smith cited concerns that a rebate may be more effective because tax cuts at the pump aren’t always passed on to consumers.
But on Tuesday, Smith said her government heard from Albertans that they’d rather get relief directly at the pumps. “So that’s what we’re going to do,” she said.
How did the rollout of the cheques go?
The cheque-rebate program came with its own hurdles. Some criticized the online application portal as invasive and onerous.
So far, the finance ministry said about 1.4 million Albertans have applied for or received the rebate — less than half of those eligible. Albertans still have until Sept. 30 to apply online.
What’s next for the price of gas?
Fuel prices have been driven sky-high since the United States’ war on Iran began in late February, choking the Strait of Hormuz, a vital shipping lane at the mouth of the Persian Gulf.
The federal government has extended its fuel excise tax until the end of January, a move that is expected to save drivers up to 10 cents a litre on gas.
This report by The Canadian Press was first published Sept. 22, 2026.