Premier Smith promises affordability payments of $100 for Albertans to combat costs

Premier Danielle Smith’s United Conservative Party government is offering Albertans a payment of $100 to help pay their bills.

She said the payment will be made instead of the province reducing its tax on gasoline at the pumps, redistributing what Albertans pay to fill their tanks.

Smith said reductions in gas taxes don’t always ensure those savings get passed on to customers.

“Our government recognizes that families are feeling the pinch, which is why we’re taking action to put more money back in their pockets,” Smith told reporters at a news conference in Calgary on Wednesday.

“This approach will ensure elevated oil revenues deliver real benefits to Albertans, benefits that don’t disappear at the pumps.”

People can start applying for the payments online starting July 1, although those on supports like Assured Income for the Severely Handicapped will get them automatically.

Smith said nearly 3.4 million adults — with a maximum household income of $225,000 or less — will be eligible.

“We wanted to make sure that it would be a meaningful amount and go to as many people as possible.“

Her announcement comes after the U.S.-Iran military conflict choked global energy supply chains and sent prices at the gas pump soaring, which in turn boosted the bottom line for Alberta’s petro-powered economy.

Alberta’s budget is in need of good news.

The Middle East war began in late February, two days after Smith’s government announced this year’s budget would have a $9.4-billion deficit due mainly to low oil prices.

That deficit was tied to an average price of US$60.50 per barrel of West Texas Intermediate, the North American benchmark.

Finance Minister Jason Nixon noted that price averaged over $90 between May 18 and June 15, which triggers the fuel tax relief program.

It’s not the first time Alberta’s government is sending cheques directly to residents while energy prices are high.

In 2006, then-premier Ralph Klein’s government sent out $400 payments to all Albertans, ultimately costing $1.4 billion. But the province was debt free then and raking in a surplus.

Klein said at the time that Albertans deserved a direct share in the province’s oil wealth.

Alberta’s most recent February budget expected taxpayer-supported debt would soar to $109 billion.

Nixon said what became known as “Ralph bucks” shouldn’t be compared to the new payouts, because one cheque could turn into multiple, quarterly $100 payments.

“The government of the day was not doing something based on fuel tax,” he said.

He added that every quarter, the government, under its own law, needs to provide relief if oil reaches an average at or above US$90 per barrel.

However, Nixon said eligible Albertans will see more savings per person than the fuel tax relief would provide, especially if oil prices continue to drop.

It also includes those who don’t drive, like seniors or transit users.

When asked why surplus oil revenue isn’t going into the province’s nest egg Heritage Savings Trust Fund, Smith said that’s a decision to be made at the end of the year.

Nixon, asked why the money isn’t going towards debt repayment, repeated that the UCP is simply following the existing fuel tax law, which requires the government revisit what to do with oil windfalls every quarter.

“It was going to either happen at the pump, or it was going to happen this way,” said Nixon.

Alberta Opposition NDP Leader Naheed Nenshi has been calling on the UCP for months to quickly drop the fuel levy to help Albertans with the cost of living.

“The premier has sketched something on the back of a napkin that violates her own legislation on the gas tax and gives Albertans $100,” he said in a statement.

“While we welcome anything that puts money into Albertans’ pockets, this one-time stunt doesn’t address the real issues that have left 60 per cent of Albertans struggling to make ends meet.”

This report by The Canadian Press was first published June 17, 2026.

Lisa Johnson, The Canadian Press