Canadian city Edmonton has withdrawn its bid to host the 2022 Commonwealth Games, leaving Durban in South Africa as the only remaining bidder.

In a statement, the Edmonton 2022 bid team blamed the “fiscal environment” for the withdrawal, citing falling oil prices as the main reason for pulling out. Edmonton and its surrounding areas are the primary supply and service hub for Canada's crude oil, oil sands and other northern resource industries.

The bid team added, however, that it would look to mount a bid to host the Games in 2026.

Edmonton’s mayor, Don Iveson, said: “This is an unfortunate announcement.

“Given the provincial government’s current financial reality, my City Council colleagues and I are disappointed that the province is unable to proceed with supporting the Games bid.

“We want to reassure the Commonwealth Games Federation that Edmonton remains committed to the Commonwealth Games movement and looks forward to a future bid.”

Responding to the pullout, David Grevemberg, CEO of the Commonwealth Games Federation said: "We are obviously disappointed to hear Edmonton will not be part of the host city bidding process for the 2022 Commonwealth Games.

"We now look forward enthusiastically to working with the Durban 2022 Bid team and their partners through the evaluation process so, together as a Commonwealth sporting movement, we can realise the ambitions of delivering Africa's first Commonwealth Games."

The Edmonton team was in the final stages of putting together a bid and, if successful, it would have been the city’s second time at hosting the multi-sport event. It also hosted the Games in 1978.

Reg Milley, chair of the bid team, added: “We do want to acknowledge the outstanding efforts of everyone who put endless hours into the development of our bid, the Commonwealth Games Federation for their support and guidance, Commonwealth Games Canada for their leadership and our many community supporters who shared the vision for 2022.

“Your efforts will be invaluable to the city for future bids and hope that we can count on your support moving forward to 2026.”

Responding to the withdrawal, the bid committee for Durban said it had noted Edmonton's withdrawal, but was still following "due process" with its own bid ahead of the March 2 deadline to lodge papers. Spokesman Faizal Dawjee confirmed that Durban would meet the deadline.

• Edmonton’s pullout is the latest in a spate of withdrawals by cities from major bidding processes. The selection of the host for the 2022 Winter Olympic Games has been described as a farce after four cities pulled out – leaving only Beijing, China and Almaty, Kazakhstan in the process.