What do the Fuel Tax Changes Mean for your Operation?

 

Starting April 1, the Alberta government will be temporarily lifting the provincial fuel tax on clear and marked gasoline and diesel. The current tax on these fuels is:

  • Clear Gasoline – 13 cents per litre
  • Clear Diesel – 13 cents per litre
  • Marked gasoline and diesel – 4 cents per litre

The lifting of this tax will be reflected in the pricing customers pay for their fuel. The government will review the collection of the fuel tax on a quarterly basis and, if required, consider reinstating the tax in stages, but have pledged not to start to reinstate collection before July 1, 2022.

This change will be implemented on the same date in which the Federal Fuel Charge (Carbon Tax) will increase in Alberta. A table identifying these changes is listed below:

 

Type of Fuel

Units for Tax Rates

April 1, 2019

April 1, 2020

April 1, 2021

April 1, 2022

Gasoline 

¢/litre

4.42

6.63

8.84

11.05

Light Fuel Oil * Diesel

¢/litre

5.37

8.05

10.73

13.41

Propane 

¢/litre

3.10

4.64

6.19

7.74

Kerosene 

¢/litre

5.16

7.75

10.33

12.91

Methanol

¢/litre

2.20

3.29

4.39

5.49

Source: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/fcrates/fuel-charge-rates.html

What Does this Mean for UFA Members?

UFA recognizes members are interested in receiving value for your dollar and may be considering the best options to proceed when making a choice between purchasing clear or marked gas or diesel.

As a co-operative, UFA is committed to serving in the best interests of our members and customers. Because of this, we would like to provide you with full information on these changes so you can make an informed decision on your fuel purchases.

At first glance, it may appear that purchasing clear gas or diesel will result in greater savings. However, the carbon levy tax exemption provided to those who meet the criteria, does not apply to clear gas or clear diesel purchases; the taxes listed in the above chart would apply for these purchases. Additionally, clear gas and clear diesel do not qualify for patronage from UFA, which was 4.5 cents per litre on marked diesel and 1 cent per litre on marked gasoline in 2021.

While this information may or may not influence your personal fuel purchasing decisions at UFA, we remain committed to providing information openly and transparently, and respect your right to determine the appropriate fuel choice for your operations.

To learn more about the upcoming changes to fuel taxes and to access the Fuel Charge Exemption Certificates, please visit Changes to the Federal Fuel Charge (Carbon Tax) Rates | UFA.

 

 


What do the Fuel Tax Changes Mean for your Operation?

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