Motorists across Central Alberta are enjoying some much-needed relief at the pump, with gas prices continuing to decline in the weeks following the Liberal's carbon tax pause.
According to Patrick De Haan, head of petroleum analysis at GasBuddy, a combination of local policy and global market shifts is contributing to the downward trend.
“We have continued to see gas prices declining across much of Canada over the last week — really, much of North America,” said De Haan. “With the carbon tax pause, we’ve seen that discount passed along.”
The average price of regular gasoline in Alberta has dropped to approximately 125.3 cents per litre — a level not seen since the early months of the pandemic. That’s about 31 cents less than this time last year.
Some stations in Red Deer were as low as 117.9 cents per litre on Wednesday morning.
Oil prices falling due to tariff uncertainty
De Haan said the recent drop in oil prices is also playing a major role. Crude oil fell from US$80 per barrel in mid-January to about US$62 in recent weeks, driven by ongoing uncertainty around tariffs and OPEC's decision to increase production.
Though prices have edged slightly higher over the past couple of days, De Haan doesn’t anticipate a sharp increase heading into the long weekend.
“We could see a small increase here as we approach the weekend related to the slight increase in the price of oil, but it’s not going to be anything that’s too drastic,” he said.
Diesel prices continue to drop
Diesel users are also seeing some relief. In Alberta, average diesel prices have dropped from nearly 160 cents per litre in late March to around 135.7. Warmer spring temperatures are reducing demand for heating oil — a product closely tied to diesel — which is helping push prices down.
Looking ahead, De Haan said the current price dip may not last forever. If there’s renewed optimism in global markets or a resolution to tariff concerns, gas prices could level out or even rise slightly.
For now, however, drivers can enjoy some of the most affordable fuel prices Alberta has seen in nearly four years.
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