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

Smith says starting Oct. 1, drivers will save 13 cents a litre on gasoline and diesel.

It comes after her government offered $100 rebate cheques to Albertans starting in April amid soaring global oil prices.

At the time, Smith cited concerns that a rebate may be more effective because it’s not always certain that tax cuts at the pump get passed on to consumers.

But the rebate program was problematic, and many eligible adults didn’t bother applying through an online portal that was criticized by some as being invasive and onerous.

The federal government has suspended its fuel excise tax until the end of January, a move that is expected to save drivers up to 10 cents a litre on gas.

Fuel prices have been driven sky high since 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.

This report by The Canadian Press was first published Sept. 22, 2026.

The Canadian Press