As of January 1, the provincial fuel tax has been partially reinstated at 9 cents per litre for gasoline and diesel and will continue for the next three months.

On Tuesday morning, gas prices in Airdrie ranged from $1.13 per litre for regular gas to $1.259.

Previously, the province stated that the fuel relief program would be set quarterly based on the average price of West Texas Intermediate (WTI), with a rule limiting rate increases to a maximum of nine cents per litre each quarter.

“On January 1, 2023, Alberta’s government paused the collection of the provincial fuel tax on gasoline and diesel for six months to help keep life affordable. We later extended the pause to the end of 2023 and committed to providing relief after that when oil prices are high," President of Treasury Board and Minister of Finance Nate Horner, previously stated last month.

He added that the fuel tax helps fund programs and services Albertans rely on while maintaining our significant tax advantage.

"The fuel tax relief program ensures we’re able to maintain strength in Alberta’s finances while continuing to support Albertans and Alberta businesses."


The province previously instituted the pause on the fuel tax back in April 2022, when Premier Jason Kenney was still in power. The pause meant that Albertans would not be paying the 13-cent provincial fuel tax on every litre of gasoline they purchased. The initial pause was meant to last until at least the end of June 2022.

  • In June 2022, the government announced the pause on the provincial fuel tax would be extended until September.
  • In September 2022, the province announced that in October 2022, they would partially be reinstating the fuel tax.

“Albertans will save 8.5 cents on every litre of gas and diesel every time they fill up at the pump," stated then President of Treasury Board and Minister of Finance, Travis Toews.

  • Toews would issue another update in December 2022, stating that the full pause on the fuel tax would begin again in early 2023.

"Starting January 1, 2023, Alberta will be suspending the full provincial fuel tax for six months. This means that Albertans will save 13 cents per litre on gasoline and diesel from January to June."

He added that in July 2023, the program will return to the current system of providing fuel tax relief based on the price of West Texas Intermediate (WTI) oil.

"This system will then remain in place permanently."

In June 2023, under the leadership of Premier Danielle Smith, the province announced that the full 13-cent pause would continue until December 31, 2023.

"Alberta’s oil price-based fuel tax relief program will resume in 2024. The program saves Albertans some or all of the provincial fuel tax when average WTI prices exceed legislated thresholds," the province added.

According to the province's previous calculations, the WTI price (average per barrel) would have to be at $90 or more for the fuel tax collection paused, while $85 to $89.99 would mean a partial reinstatement of the fuel tax at 4.5 cents/litre.

$80 to $84.99 for the WTI would mean that the fuel tax would also be partially reinstated at 9 cents/litre, while $79.99 or less would mean a full reinstatement of the 13-cent/ litre tax. 

However, the province underlined that the WTI price average is based on the 20 trading days of price data leading up to the 15th of the month preceding the start of the next quarter.

As of December 29, 2023, WTI was trading at approximately $71.65.

The next update about the fuel tax relief program is anticipated before the next quarter ends on March 31.

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