Alberta Has a Surplus and a Fuel Tax Cut is Required

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The Canadian Taxpayers Federation is calling on the Alberta government to cut its fuel tax in the wake of the updated budget numbers showing a projected $2-billion surplus.

“Albertans are fighting to afford basics like food, homes and fuel and this government needs to cut the gas tax now,” said Kris Sims, CTF Alberta Director. “This government’s gimmick of a rebate hasn’t worked, and it needs to use this windfall to deliver a direct fuel tax cut now.”

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The government announced the province is on track for a $2-billion surplus for 2026-27 in its first quarter report.

This is a reversal of finances since the budget which projected a $9.4-billion deficit.

The change is due to a more than $9.7-billion increase in resource revenue caused by higher than projected oil prices, an additional $545 million in corporate income tax and a $1.4-billion increase in other revenues.

The Alberta government’s fuel tax relief program states that when the price of a barrel of oil eclipses US$80, $85 and $90 per barrel, the 13 cent per litre fuel tax will be reduced or eliminated.

The government implemented a $100 rebate program instead of cutting the fuel tax down to zero, in July.

Only 1.2 million Albertans have applied for the rebate out of 3.4 million people who could get it.

“This government needs to quit playing with gimmick rebates and just cut the fuel tax like it said it would,” said Sims. “If the government focuses on cutting waste, balancing the budget and not blowing this surplus money, it can afford this promised gas tax cut.”

Kris Sims, CTF Alberta Director announces cost of fuel taxes at the Legislature in Edmonton
Thursday, Aug. 20, 2026

For more information & interviews:

Kris Sims, Canadian Taxpayers Federation

Phone or text: 604-997-1798
Email: [email protected]
X (Twitter): @kris_sims

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The Canadian Taxpayers Federation is Canada’s leading non-partisan citizens’ advocacy group fighting for lower taxes, less waste and accountable government.
Founded in 1990, the CTF has seven offices across Canada.
The CTF is funded by free-will contributions that do not get tax receipts.

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