Small businesses are still being squeezed by fuel costs: CFIB

Diesel prices are seen at a gas station in Montreal on Thursday, April 9, 2026. THE CANADIAN PRESS/Christopher Katsarov

Alberta’s small businesses are calling on the United Conservative Party (UCP) government reduce its fuel tax now, rather than later this summer.

The Canadian Federation of Independent Business (CFIB) recently polled its members and found 84 per cent want immediate fuel tax relief instead of waiting for a reassessment on July 1.

“Fuel costs are now the top concern for small firms, with 58 per cent ranking them as their biggest challenge—surpassing taxes and economic or political uncertainty,” the CFIB said in a statement Tuesday.

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Officials say businesses and residents have been struggling with high fuel costs since March with no action being taken by the UCP.

“That’s three months of added cost burden for small business owners who were already dealing with high costs, sustained economic uncertainty and low confidence,” said Keyli Loeppky, senior director of Alberta and interprovincial affairs with the CFIB.

“It is no surprise over half of Alberta business owners say they wouldn’t recommend starting a business today.”

The high fuel costs have led to higher delivery and shipping costs, job site travel and equipment use while also impacting how many customers are coming through the door and how much they spend.

The CFIB says the provincial government has been benefiting from high oil prices, which have shifted its fiscal outlook from a projected deficit to a possible surplus.

The group says those gains should be shared with small business owners, as well as all Albertans.

In April, when Prime Minister Mark Carney announced the federal government would drop its 10-cent-a-litre tax, Premier Danielle Smith said she would be waiting until the July 1 reassessment before making any changes at the provincial level.

“We have to be mindful that just as quickly as prices escalated, they can come down that quickly again,” Smith said at the time.

CTV News has reached out to the provincial government for comment on Alberta’s fuel tax.

“The reality is that affordability pressures are hitting businesses now,” Loeppky said. “Small firms need relief that reflects today’s economic conditions—not a delayed response.”

The CFIB said its data indicated that 78 per cent of small businesses have absorbed higher fuel costs and 54 per cent passed those costs onto customers.

Fifty-one per cent said high fuel prices have “a highly negative impact” on operations.