Updated Checked by the Tax-Services.ca editorial team How we check
Alberta’s fuel tax on gasoline and diesel is set at zero cents a litre from 1 October 2026, according to the province’s rates page. The usual rate is 13 cents a litre. It drops when oil is expensive, and this quarter it has dropped all the way. That’s the position on the day we wrote this, 30 September 2026, so check the page again before you budget past December.
The collection of the provincial fuel tax on gasoline and diesel will be suspended effective October 1, 2026.
Fuel tax, Government of Alberta, alberta.ca
What is the Alberta fuel tax per litre?
Alberta.ca lists the rates for each fuel type. These are the ones we read, with the gasoline and diesel lines effective 1 October 2026.
| Fuel | Tax per litre |
|---|---|
| Gasoline, all grades | $0.000 |
| Diesel, all grades | $0.000 |
| Marked gasoline and marked diesel | $0.00 |
| Aviation gas and jet fuel | $0.015 |
| Locomotive fuel | $0.065 |
The gasoline and diesel zero comes from the oil price rule below, so it isn’t a permanent repeal. The province says the relief stays in place until at least 31 December 2026. The earliest the tax could start coming back, in full or in part, is 1 January 2027.
Why does the tax change every three months?
Alberta ties the rate to the average price of West Texas Intermediate oil. The rate for gasoline and diesel is reset on 1 January, 1 April, 1 July and 1 October. The province’s fuel tax relief program works in steps.
| Average WTI price | Tax on gasoline and diesel |
|---|---|
| $90 or more | Suspended |
| $85 to $89.99 | 4.5 cents a litre |
| $80 to $84.99 | 9 cents a litre |
| Below $80 | Fully back, 13 cents a litre |
When oil falls, the tax can’t jump by more than 9 cents a litre in one quarter. So a quick oil drop still brings the tax back in stages. You can’t predict the next step from the pump, since the rate follows oil prices from earlier and not today’s.
How much does 0 cents save you at the pump?
Do the sum for a driver who fills up with 50 litres. At 13 cents, the provincial tax on that tank is $6.50. At 9 cents it’s $4.50, and at 4.5 cents it’s $2.25. At zero, it’s nothing. A few bucks a tank, in other words.
Over a year, the difference adds up faster than the tank suggests. A car that burns 1,500 litres a year pays $195 in provincial fuel tax at 13 cents, and $0 when the tax is suspended. Picture Dana in Red Deer, who puts about 40 litres a week into a commuter car. That’s 2,080 litres over 52 weeks, or $270.40 of provincial tax at the full rate. Ballpark, it’s a nice chunk of change, though small next to a car payment. Enter your own litres and see the effect on your monthly budget in the budget calculator, and compare it with the loan side in the car loan calculator.
What should you budget for in January?
Plan for the worst case, which is the full 13 cents. If the tax stays suspended or comes back only in part, anything you didn’t spend is a bonus. If you drive for work or run a few trucks, put a line in your January budget for the rate that applies on the 1st, and check the province’s page in the last week of December. Partial collection is possible, so the number you see then may not be zero and may not be 13 either.
Will the pump price fall by exactly the tax?
Probably not by a neat amount, and nobody can say for certain what stations will post. The tax is one piece of the price, alongside the crude cost, refining, delivery and other taxes, and we haven’t researched those parts. If you’re a business, the tax on the fuel you buy is a cost of doing business, and how you deduct it is a question for the self-employed tax calculator and a look at CRA guidance, since the rules differ from case to case. The GST/HST calculator handles the sales-tax side of a purchase separately.
What mistakes do people make with Alberta fuel tax?
People assume a suspension is forever. It isn’t, and the 9 cent limit on increases shows the province expects it to return. Others confuse marked fuel with ordinary fuel. Marked gasoline and diesel have a separate line on the rates page, so they aren’t taxed the way the fuel in your car is.
Finally, don’t rely on an old article or a screenshot. The rates above were read on 30 September 2026 and can change on 1 January 2027. If you’re a fuel seller or an eligible business, contact Alberta’s Tax and Revenue Administration, which the province lists for questions.
Where these rates come from
The rates and the oil price steps come from Alberta.ca, in the fuel tax overview and the tax and levy rates pages, as read on 30 September 2026. The litre examples are our own arithmetic on those rates. This is an independent guide and isn’t affiliated with the Government of Alberta.
Frequently asked questions
What is the Alberta fuel tax on gasoline now?
The province's rates page shows $0.000 a litre for gasoline and diesel effective 1 October 2026. The usual rate is 13 cents.
Why did Alberta's fuel tax go to zero?
The rate follows the average price of WTI oil. At $90 or more the tax on gasoline and diesel is suspended.
How often does the rate change?
Quarterly, on 1 January, 1 April, 1 July and 1 October.
Does the suspension apply to marked fuel and jet fuel?
Marked gasoline and diesel show $0.00 per litre. Aviation gas and jet fuel show $0.015 and locomotive fuel $0.065.
What will the rate be in 2027?
We couldn't confirm. Check Alberta.ca before 1 January 2027, because the rate can move with oil prices.
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