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Alberta’s gas tax is normally 13 cents a litre on gasoline and diesel, but the province suspended collection on October 1, 2026, and says that will last until at least December 31. At the pump, you pay no Alberta fuel tax at all for now.
How much is the Alberta gas tax right now?
Nothing, for the moment. Alberta’s fuel tax rates page lists $0.000 a litre for gasoline and diesel from October 1, 2026.
The normal rate has been 13 cents a litre since April 1, 2024. Marked fuel, the dyed kind sold for tax-exempt uses such as farm machinery, carries 4 cents instead. The province also runs an Alberta Farm Fuel Benefit Program that gives a 9 cent a litre exemption.
Why the zero? It comes from a price-linked relief program, and it isn’t a permanent cut. When West Texas Intermediate oil averages US$90 a barrel or more over the measuring period, collection stops. The province says the earliest it would start collecting again, in whole or in part, is January 1, 2027.
Who actually pays the tax to the province?
Not you, at least not directly. The Government of Alberta’s fuel tax page explains that the tax is reported and remitted by refiners and large wholesalers, and it’s built into what the station pays for fuel. That’s why you never see it as its own line on a receipt, and why a suspension shows up only if the savings get passed down the chain.
What does the oil price link do to the rate?
Rates are reviewed every quarter, on January 1, April 1, July 1 and October 1. They follow the average of 20 trading days before the 16th of the month before the quarter starts. This is the schedule the province published.
| WTI oil price (US$ a barrel) | Alberta tax per litre |
|---|---|
| Below $80 | 13 cents |
| $80 to $84.99 | 9 cents |
| $85 to $89.99 | 4.5 cents |
| $90 or more | Suspended |
When oil falls, the rate can’t rise by more than 9 cents a litre in one quarter. So a drop in oil prices next autumn wouldn’t take you from zero to 13 cents overnight.
Is there a federal gas tax too?
Yes, and it has moved as well. The federal excise tax on gasoline is normally 10 cents a litre, and 4 cents on diesel. Ottawa suspended it from April 20, 2026 through January 31, 2027. From February 1 to March 31, 2027 it drops to half, 5 cents on gasoline and 2 on diesel, and the full rates return on April 1, 2027.
What about the carbon charge on fuel? The federal government cancelled the consumer carbon price as of April 1, 2025, so it’s not on your receipt anymore.
GST and other taxes on fuel weren’t part of the pages this article draws on, so they’re left out here.
What does the suspension save a driver?
Take someone who buys 100 litres a month. At 13 cents, Alberta’s tax is $13 a month, or $156 over a year. Over the three months of the suspension it’s $39. Add the federal 10 cents and the two suspended taxes together come to $23 a month, on those same 100 litres.
Now a heavier user. Priya in Red Deer fills a 50 litre tank once a week, roughly 200 litres a month. On gasoline, that’s $26 of Alberta tax and $20 of federal tax, so $46 a month while both are off. A farmer-style pickup on 200 litres of diesel does a bit differently: $26 provincial plus $8 federal at 4 cents, or $34 a month.
Your own numbers will differ, so pull out a few fuel receipts and see how many litres you really buy in a month. That figure matters far more than any headline about cents per litre. It’s a few bucks next to a car payment. The car loan calculator shows how much a monthly payment weighs against fuel, and a line in the budget calculator keeps track of the total.
These are estimates from the published tax rates. Whether stations pass the whole saving to you is a pricing choice, and nobody can promise it.
Will pump prices drop by the full amount?
Probably not to the cent, and not in a straight line. Pump prices move with crude, refinery costs, local competition and the day of the week. If the tax falls by 13 cents, you may see the saving partly or fully, or you may see it blurred by a price swing that has nothing to do with tax. The tax is one piece of what you pay, not the whole price.
What about the $100 Alberta Energy Rebate?
This is a separate one-time payment of $100, and applications opened on July 1, and the province extended the deadline by a month, so you can apply until October 31, 2026. To qualify you have to be 18 or older on July 1, 2026, live in Alberta, have filed your 2025 tax return, and have a total household income of $225,000 or less. You can verify your identity with your 2025 Notice of Assessment on the online portal.
The province says it’s non-taxable and doesn’t affect other government benefits. People on the Alberta Seniors Benefit, AISH, ADAP or Income Support were enrolled automatically. If you applied, keep an eye on your account, and only ever use the province’s own rebate page and not a link in a text message.
Common mistakes about Alberta fuel tax
People assume the pump price shows the tax. It doesn’t, and prices move for many reasons unrelated to the tax. Another is treating the suspension as final. It’s set for at least the quarter and reviewed each quarter after that.
And gas tax isn’t your income tax. Alberta’s income tax has a low 8% first bracket in 2026, which you can test in the income tax calculator by choosing Alberta.
What this page is based on
The Government of Alberta’s pages on fuel tax rates, the fuel sellers notice on the suspension, and the Alberta Energy Rebate page. Federal figures come from a Department of Finance release from September 2026. The litre examples are our arithmetic. This is an independent site, not part of any government body.
Frequently asked questions
How much is the Alberta gas tax?
The regular rate is 13 cents a litre on gasoline and diesel. Collection is suspended from October 1, 2026 until at least December 31, 2026.
When could Alberta start collecting fuel tax again?
The province says the earliest would be January 1, 2027, in whole or in part.
Is the federal fuel tax also suspended?
The federal excise tax has been suspended since April 20, 2026 through January 31, 2027, then half rates until March 31, 2027.
Is there still a carbon tax on gas in Alberta?
The federal consumer carbon price was cancelled as of April 1, 2025.
Who can get the $100 Alberta Energy Rebate?
Alberta residents 18 or older on July 1, 2026 who filed a 2025 return and have household income of $225,000 or less. Applications close September 30, 2026.
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