Albertans are welcoming an extended pause of the federal fuel excise tax while also wondering why their province isn’t doing more to help at the pumps. Canadian Finance Minister François-Philippe Champagne made Ottawa’s gas and diesel announcement Wednesday. The current tax pause—which has been in place since April—will now be extended until Jan. 31, 2027. It will gradually return by the spring. But out west, Canada’s main energy-producing province is still charging 13 cents per litre for regular gasoline and diesel. Despite suspending the tax in the past, Alberta’s current UCP government chose not to do so this summer. Instead, it introduced a one-time, $100 Alberta Energy Rebate for eligible residents. Heather Exner-Pirot, Macdonald-Laurier Institute director of natural resources, energy and environment, told CTV News on Tuesday she doesn’t think the decision makes sense. “It’s been a surprise to me that the (Mark) Carney Liberals are the ones that have been doing this and not the (Danielle) Smith UCP, when we actually already had a program in place that was meant to pass that money back to customers in the event of high oil prices,” she said. Alberta released its 2026–27 first-quarter fiscal update last week. It projects a $2-billion surplus for the fiscal year, mainly helped along by high energy prices. “It would be a lot better for people (if the province suspended its tax),” said Calgary driver Amy. “We have the oil in Alberta, so it should be a lot cheaper.” “Alberta’s making a lot of money off oil, so they can afford it,” Neil Swanson added. “It’s a good time to do it.” According to Champagne, the lost federal revenue from the suspension will amount to $5.3 billion. Provincial statement Wednesday evening, CTV News received a statement from Alberta finance minister and treasury board president Jason Nixon, stating that the province won’t be pausing its gas tax. “Alberta’s government is now forecasting a $2-billion surplus for the 2026-27 fiscal year — an improvement of $11.4 billion in a single quarter. While this is welcome news, it is not a blank cheque. This is still just a first-quarter projection, and we know energy prices can change quickly, trade uncertainty remains real, and Alberta is not yet in a cash surplus position. Alberta has been here before — flush with temporary increases to resource revenue, governments increasing permanent spending to match, and then oil drops but the deficit stays and Albertans pay the price. “This government will not repeat the mistakes of the past and we will not mistake a temporary windfall for a permanent trend. Fiscal responsibility will continue to be a top priority for Alberta’s conservative government, and we will be prudent with what we can control to make decisions that help families and communities thrive long-term. “That’s why Alberta’s path forward will continue to be built on our commitment to focus on what matters to Albertans – protecting essential services, controlling spending, balancing the books, reducing debt, growing the Heritage Fund, and — when the numbers genuinely support it — putting more money back in Albertans pockets.”
