News & Insights

Alberta Suspends Fuel Tax

Tax Development Mar 09, 2022

As announced on March 7, 2022, Alberta will suspend its collection of fuel taxes, effective April 1, 2022. Under this postponement, the tax imposed under Alberta’s Fuel Tax Act will no longer apply at the following rates:

  • gasoline and diesel at 13 cents per litre; and
  • marked fuel at four cents per litre.

This measure is designed to provide Albertans with some tax relief in the face of rising fuel costs. The timing coincides with the federal government’s planned carbon tax increase, which equates to approximately two cents per litre of gasoline. The fuel tax suspension is expected to be temporary and will be in place until at least June 30, 2022. In the meantime, the Alberta government will monitor the average price of West Texas Intermediate (WTI) crude oil on a quarterly basis and, if required, reintroduce its fuel taxes in stages.

For additional information on the fuel tax relief announcement, please refer to Alberta News Release Providing Relief for Fuel and Utility Costs.