The Canadian Taxpayers Federation is ramping up pressure on Premier Danielle Smith's government to abandon its troubled energy rebate program and instead slash Alberta's gasoline tax—a move the advocacy group says would provide more meaningful relief to struggling Albertans.
Kris Sims, CTF Alberta director, made the case during a visit to Red Deer on Wednesday, arguing that the province's $100 rebate initiative—launched in June as an affordability measure—has largely flopped.
"The key word is 'try,' because it looks like about a third of Albertans or so have actually taken the government up on that," Sims said. "So they're leaving money on the table."
The Energy Rebate program offers $100 to individual Albertans and up to $200 for two-adult households, provided they filed a 2025 tax return and earn less than $225,000 annually. But uptake has been disappointing, with the CTF citing complaints from seniors and others who struggle with the online application portal.
Applicants have also raised red flags about privacy concerns. The rebate process requires sensitive personal data including banking information, driver's licence photos, and even selfies—a level of documentation that has prompted backlash.
"The government tried this. I think it's a failure," Sims said while standing outside a Shell service station. "They should go back to the drawing board and actually enact their own rules."
Alberta's Own Fuel Tax Rules
Sims is pointing to existing Alberta legislation that mandates automatic fuel tax relief based on oil prices. Under those rules, the entire 13-cent-per-litre provincial gasoline tax should be suspended whenever crude oil trades above US$90 per barrel. When oil sits between US$80 and US$90, partial cuts should trigger automatically—with rates adjusted quarterly.
"They didn't do that," Sims said, noting that Albertans currently pay a combined burden of 13 cents per litre in provincial fuel tax, 7.4 cents in federal sales tax, and seven cents in carbon tax.
The CTF is also calling on Prime Minister Mark Carney to extend the federal excise tax suspension beyond its September 7 expiry date. The temporary cut, implemented in April, reduced federal fuel excise by 10 cents per litre on gasoline and four cents on diesel.
Canadians Oppose Further Tax Increases
A Leger poll commissioned by the CTF suggests public opinion is on the federation's side. The survey found that 43 per cent of Canadians strongly oppose a federal excise tax increase, while 20 per cent are somewhat opposed. Only 8 per cent strongly support raising the tax, and 17 per cent are somewhat supportive. Eleven per cent remained undecided.
"We're asking Prime Minister Carney to hold off. Don't increase that federal excise tax again. Keep it off completely," Sims told reporters.
The push comes as Albertans continue to grapple with affordability challenges heading into the fall. Energy costs remain a significant household expense, and the CTF argues that a permanent reduction in gasoline taxes would deliver faster, simpler relief than a rebate program plagued by low uptake and privacy concerns.
This article is based on reporting from the Red Deer Advocate.