With oil prices holding above $90 per barrel for more than a month, Alberta’s small businesses are struggling with high fuel costs – without relief from the province’s fuel tax program, says the Canadian Federation of Independent Business (CFIB).
The CFIB, Canada’s largest association of small and medium-sized businesses with 103,000 members (11,000 in Alberta) across every industry and region, is urging the Alberta government to immediately reinstate fuel tax relief to reflect current market conditions and to review the existing trigger mechanism to ensure it responds more effectively to sustained price increases.
“Fuel prices haven’t just jumped briefly. They’ve remained elevated long enough that businesses are now treating this as the new reality,” said Keyli Loeppky, Director of Alberta and Interprovincial Affairs at CFIB. “Fuel tax relief was not reinstated on April 1, leaving small businesses exposed at a time when cash flow pressures are already intense.
“Fuel is not a discretionary expense for most small businesses. 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.
“Alberta’s small businesses are the backbone of the provincial economy and don’t have the luxury of waiting until next quarter for support. 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.”
Many small businesses across Alberta depend on fuel to operate, particularly in transportation, construction, and agriculture, sectors, said the organization. CFIB’s March Business Barometer shows fuel costs are a major constraint for 42% of Alberta small businesses, demonstrating the scale and seriousness of the issue.
CFIB noted that Alberta’s oil‑price‑based fuel tax relief program relies on backward‑looking quarterly averages of West Texas Intermediate (WTI) prices, which can cause relief to lag months behind real‑time market conditions.
CFIB is calling on the provincial government to:
· Provide immediate fuel tax relief based on current oil price conditions; and
· Review the existing fuel tax trigger mechanism to ensure it responds promptly to sustained price increases.
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