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Alberta's Smith Says Province Pausing Its Gasoline Tax as of Oct. 1

The province will monitor pump prices and can fine price gouging businesses up to $300,000 or two years in jail, officials said.

  • Alberta Premier Danielle Smith announced the province will suspend its fuel tax for three months starting October 1, saving drivers 13 cents per litre on gasoline and diesel to combat rising pump costs.
  • Soaring fuel prices stem from global instability after 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 government will monitor pump prices for "any wrongdoing" and take action against businesses that price gouge, with guilty parties facing fines of up to $300,000 or up to two years in jail.
  • Jason Nixon, president of treasury board and minister of finance, said the government is "ensuring Albertans have the support they need to address the higher costs of everyday essentials" amid global uncertainty, replacing previous rebate cheques.
  • Officials will continue monitoring oil prices throughout the next quarterly review period; if average prices exceed thresholds, the government will determine the best options to ensure relief reaches Albertans during future reviews on January 1, April 1, and July 1.
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Winnipeg Free PressWinnipeg Free Press
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Alberta's Smith says province pausing its gasoline tax as of Oct. 1

CALGARY - Alberta Premier Danielle Smith says her government is axing its fuel tax for three months to help combat the cost at the pumps.

·Winnipeg, Canada
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Global News broke the news in Toronto, Canada on Tuesday, September 22, 2026.
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