Something rare is happening at Alberta gas stations right now, and it's worth paying attention to.
Pull into a Petro-Canada in Edmonton and you might do a double-take at the sign: 89.9 cents per litre. Head out to Drayton Valley and you'll see similar numbers 97.9 at some stations. Even Calgary's getting in on the action, with Costco members filling up at 96.9 cents.
That's right. Sub-dollar gas is back.
So Why Is Gas Suddenly Cheap?
Oil prices have been weak for most of 2025, and December is no exception. WTI crude the benchmark that drives what you pay at the pump has been stuck in the mid-$50s to low-$70s range for months now. Compare that to 2022 when it cracked $120 per barrel and everyone was losing their minds.
A few things are keeping prices suppressed. China's economy hasn't bounced back the way analysts expected, which means global oil demand is softer than anticipated. Meanwhile, production from the U.S., Canada, Brazil, and Guyana keeps growing. More supply plus weaker demand equals lower prices. Econ 101 stuff.
Winter also plays a role. People drive less when it's minus-30 and the roads are garbage. Refineries have plenty of product sitting around, and that keeps wholesale prices and eventually pump prices from climbing.
What About Alberta's Fuel Tax?
The province reinstated the full 13-cent-per-litre fuel tax back in April 2024 after oil dropped below the $80 USD threshold. It's still in effect now. Under Alberta's system, the tax gets suspended when WTI hits $90 or higher, partially reduced between $80-90, and fully applied below $80.
Even with that full tax baked in, prices are still landing under a dollar in a lot of places. That tells you how soft the underlying crude market really is.
Current Prices Around the Province
Here's a snapshot of what drivers are paying right now:
Calgary
Costco on Buffalo Run Blvd: 96.9¢
Esso/Circle K in Tuscany: 99.9¢
Esso/7-Eleven on Bowness Rd: 99.9¢
Edmonton
Petro-Canada locations: 89.9¢ to 98.8¢
Drayton Valley
Petro-Canada on 50th St: 97.9¢
Fas Gas Plus on 50th Ave: 98.9¢
Rural stations are often matching or beating city prices, which isn't always the case. Worth checking if you're passing through smaller towns.
Will This Last?
Probably for a bit, yeah.
Most energy forecasts aren't calling for any dramatic rebound. J.P. Morgan has Brent crude averaging around $58 per barrel for 2026. The U.S. Energy Information Administration is projecting inventory builds well into next year, which typically keeps a ceiling on prices. Unless something major shifts OPEC+ slashing production, a geopolitical crisis, China suddenly buying everything in sight there's no obvious catalyst for a spike.
That said, oil markets have a way of humbling predictions. A lot can change in a few months.
For now, though, Alberta drivers are paying less than pretty much anywhere else in Canada. Ontario and B.C. are still dealing with prices north of $1.40 in most places. If you've been putting off a trip to Jasper or Banff, your timing isn't bad.
