Alberta small businesses protest UCP government’s lack of fuel tax relief

A woman fills up her car with gas in Toronto, on Monday, April 1, 2019. THE CANADIAN PRESS/Christopher Katsarov

Gas prices are only just starting to come down at some stations in Alberta, but an organization that works with small businesses says more action is needed.

The Canadian Federation of Independent Business (CFIB) says the price per barrel has been holding above $90USD for more than a month, but no fuel tax relief is in sight.

• The information you need to know, sent directly to you: Download the CTV News App

“Fuel prices haven’t just jumped briefly—they’ve remained elevated long enough that businesses are now treating this as the new reality,” said Keyli Loeppky, director of Alberta and interprovincial affairs at CFIB, in a news release.

“Fuel tax relief was not reinstated on April 1, leaving small businesses exposed at a time when cash flow pressures are already intense.”

The Alberta government says it understands that fuel prices are high for all residents and businesses, but the province’s tax rate remains among the lowest in Canada.

“We understand that when costs go up at the pumps, Albertans can feel that pressure on their wallets. That’s why we have the Fuel Tax Relief Program, so when fuel prices are consistently high, Albertans can get relief,” said Marisa Warner, senior press secretary for Finance Minister Nate Horner, in a statement.

According to the province’s guidelines, an extended period of high oil prices – a full quarterly review period – is needed before the tax is removed.

CFIB says this viewpoint is “backward-looking,” which can mean relief is months behind real-time conditions. It is seeking a review of the trigger mechanism and “immediate fuel tax relief on current oil price conditions.”

The organization says high fuel costs are a budget constraint for 42 per cent of Alberta small businesses.

“These are essential costs that can’t easily be passed on to customers without risking competitiveness or reduced demand—especially when business owners are already grappling with inflation, rising taxes, insurance costs, and overall economic uncertainty,” Loepkky said.

“When relief is delayed, it’s denied—timely fuel tax relief would provide real support and show government understands the pressures entrepreneurs face right now.”

The finance minister’s office said higher oil prices can strengthen the province’s fiscal position, with different periods of time affecting different budgets.

Warner said any high oil prices after April 1 will help offset the 2026-27 deficit, but it’s unclear how much will be shaved off.

“We have only been in this fiscal year for 10 days. We will not base projections for the entire 2026–27 fiscal year on just 10 days of elevated oil prices," she said.

“If need be, our fiscal and deficit projections will be updated at the next quarterly update. The next quarterly update is set for the end of June.”