Calgary motorists received a welcome year-end gift as the price of gasoline dipped below a significant psychological threshold. On Saturday, December 28, 2025, several fuel stations across the city were offering regular unleaded for less than one dollar per litre.
A Direct Link to Global Oil Markets
This dramatic drop at the pump is directly tied to a sustained decline in global crude oil prices. While the lower prices present a challenge for Alberta's provincial budget, which relies heavily on resource royalties, they are providing immediate financial relief for everyday drivers. The savings are becoming visibly apparent on station signage throughout Calgary.
The price drop was recorded at 5:16 PM Eastern Standard Time on December 28, marking a notable shift from the higher rates seen earlier in the year. Analysts point to a combination of increased supply and moderated global demand as key factors pushing oil, and subsequently gasoline, prices downward.
Relief for Drivers Amid Economic Uncertainty
For households and businesses, the lower fuel costs act as a de facto tax cut, freeing up income for other expenses. The timing, following the holiday season, is particularly beneficial for families facing other financial pressures. The extent of the savings is substantial; filling a standard 50-litre tank now costs under $50 at the participating stations, compared to significantly more just months ago.
It is important to note that prices can vary significantly between neighbourhoods and fuel brands. While some stations have breached the sub-$1.00 per litre mark, others may still be slightly above. Experts recommend using price comparison apps to locate the best deals in real-time.
What This Means for Alberta's Economy
The situation presents a classic double-edged sword for Alberta. On one hand, consumer spending power gets a boost, which can stimulate local economic activity. On the other hand, the government's fiscal planning, which is intricately linked to resource revenue, must adapt to the new price reality. This tension between public finance and private savings is a central feature of Alberta's commodity-driven economy.
Market observers suggest that while the current dip is pronounced, fuel prices remain volatile and subject to rapid change based on international events, production decisions by major oil-exporting nations, and refinery outputs. Drivers are encouraged to enjoy the relief while it lasts but to remain aware that the market can shift quickly.
For now, the sight of a leading digit of "0" on gas station price boards is a welcome one for Calgarians, offering a tangible counterbalance to other rising costs of living as the new year approaches.
