End of Gas Station Price War Sends Calgary Prices Back Above C$1.70 a Litre, Expert Says

Calgary motorists saw petrol prices surge more than C$0.20 (£0.11) a litre in the week after Alberta scrapped its fuel tax, with the citywide average climbing back above C$1.70 (£0.90) despite the C$0.13-per-litre (£0.07) relief.

GasBuddy figures cited by CBC News put Calgary's average at C$1.50 (£0.80) per litre on 1 October 2026, when the province suspended its fuel tax. By 7 October, the average had risen to C$1.715 (£0.91) per litre, an increase of C$2.15 (£0.11) per litre. The figures show how quickly a tax saving can be overtaken by other movements in pump prices.

Why the Cheapest Stations Raised Their Prices

Patrick De Haan, GasBuddy's head of petroleum analysis, told CTV News that competition appeared to push some stations well below the wider market after the tax change. Prices at several forecourts fell into the C$1.30s (£0.69–£0.74) and C$1.40s (£0.74–£0.80), while others stayed above C$1.70 (£0.90).

According to De Haan, stations cut prices so rapidly that some began selling below cost. Those retailers then raised their prices again as the local price war subsided. His explanation for Calgary gas prices after tax cut concerns those unusually cheap stations, rather than every change in the citywide average.

CTV News reported that most Calgary stations were charging around C$1.71 (£0.90) a litre by the time of its report. De Haan cautioned that removing a tax does not necessarily mean pump prices will fall and remain low. He also pointed to daily changes in global oil markets amid tensions in the Middle East.

What the C$0.13-Per-Litre Tax Suspension Covers

Alberta suspended its provincial tax on gasoline and diesel on 1 October and says the measure will remain in place until at least 31 December 2026. The government says it will monitor pump prices to ensure the savings reach consumers, but the Alberta fuel‑tax suspension does not set a fixed retail price.

The tax rate is adjusted quarterly based on the average price of West Texas Intermediate crude oil over a specified 20‑trading‑day review period. For the quarter starting in October, the average was US$90.54 (£69.98) a barrel during the 18 August to 15 September review period, above the US$90 (£69.56) threshold for a full suspension.

Those rules explain the tax change, while Calgary gas prices after tax cut also reflect other costs and retailers' decisions. Service Alberta Minister Dale Nally told CBC News that demand, local supply, delivery costs and property taxes can make prices vary between stations and neighbourhoods.

Premier Danielle Smith told reporters on 7 October that prices might take time to adjust and urged drivers to compare stations. She argued that Albertans still paid less than motorists in other provinces. CBC News reported averages that day of C$2.08 (£1.10) per litre in Vancouver and C$2.17 (£1.15) per litre in St. John's.

Why a Lasting Drop Remains Uncertain

Al Salazar, Enverus's head of macro oil and gas research, told CBC News that damaged Russian refineries and disruption to shipping through the Strait of Hormuz were constraining supply. He did not expect a substantial fall in consumer prices until those pressures eased.

Salazar said stations may pay different prices depending on when and where they obtain fuel, and expected large local price gaps to narrow within a month or two. That outlook for Calgary gas prices after tax cut is his assessment, rather than a forecast of a particular price.

The province says it is monitoring pump prices. Businesses found guilty of price gouging can face court‑imposed fines of up to C$300,000 (£158,824) or up to two years in prison. A price increase alone does not establish price gouging or other wrongdoing.

Alberta could begin reinstating the fuel tax on 1 January 2027, depending on the next review, although the tax cannot increase by more than C$0.09 (£0.05) per litre in a single quarter. Until then, Calgary gas prices after the tax cut remain subject to competition, wholesale costs and wider market conditions.

For motorists tracking Calgary gas prices after tax cut, the rise from C$1.50 to C$1.715 (£0.80 to £0.91) per litre shows that the price paid at the pump increased despite the tax saving. The citywide figures do not establish how much of that increase was attributable to wholesale fuel costs, crude oil prices, retail margins, competition or other factors.