The Canadian Federation of Independent Business (CFIB) has called on the Alberta government to reinstate fuel tax relief on an immediate basis to help the province’s struggling small businesses amid the present oil price conditions.
“Alberta’s small businesses are the backbone of the provincial economy and don’t have the luxury of waiting until next quarter for support,” said Keyli Loeppky, CFIB’s director of Alberta and interprovincial affairs, in a media release.
CFIB also urged the provincial government to review the current tax trigger mechanism so it can more effectively and swiftly respond to persistent price increases.
“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,” Loeppky said in the media release.
CFIB explained that the province’s oil price-based fuel tax relief program applies backward-looking quarterly averages of West Texas Intermediate (WTI) prices, which can make relief lag months behind the current market conditions.
Oil market conditions
CFIB noted that oil prices have remained above $90 for each barrel for over a month.
“Fuel prices haven’t just jumped briefly—they’ve remained elevated long enough that businesses are now treating this as the new reality,” Loeppky said in CFIB’s media release. “Fuel tax relief was not reinstated on April 1, leaving small businesses exposed at a time when cash flow pressures are already intense.”
Alberta’s small businesses – many of which rely on fuel to operate, especially in the transportation, construction, and agriculture sectors – have been dealing with the elevated fuel costs.
“Fuel is not a discretionary expense for most small businesses,” Loeppky said. “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.”
CFIB’s March Business Barometer® identified fuel costs as a significant barrier for 42 percent of small businesses across Alberta.
As the country’s largest association of small and medium-sized businesses, CFIB aims to help business owners thrive by promoting policy updates at all government levels, offering relevant advice and tools, and negotiating exclusive savings. CFIB has 103,000 members across all industries and regions, 11,000 of whom are in Alberta.