Fuel Consumption Levies in Canada
A portion of the final price you pay at the pump for gasoline and other fuels goes to various levels of government in the form of direct or indirect government levies. Depending on where you live, you may pay a federal, provincial and a municipal tax on these products, as well as a federal fuel charge.
How are fuels taxed?
There are different types of taxes on transportation and heating fuel:
Fixed taxes
The federal government charges an excise tax at a flat rate of 10 cents per litre on gasoline (in effect at that rate since 1995) and 4 cents per litre on diesel (in effect at that rate since 1987). Furnace oil is exempt from this tax and there is no federal excise tax on natural gas or propane.
Provincial governments also collect gasoline and diesel taxes and these vary considerably by province. Lastly, three municipalities in Canada (Vancouver, Victoria and Montreal) also apply taxes on gasoline.
Sales taxes
This tax is based on a percentage of the retail price, a method known as ad valorem. The federal GST/HST is charged on crude oil, refining and marketing costs and margins, the federal excise tax, applicable federal and provincial carbon levies, and provincial road taxes. Provincial sales taxes do not apply to fuels such as gasoline or diesel, except where they have the harmonized sales tax (HST) and in Quebec (QST).
| Federal and Provincial Consumption Taxes on Petroleum Products (Cents Per Litre) | ||||
|---|---|---|---|---|
| Gasoline | Diesel | Propane (motor vehicle) |
Furnace Oil/ Natural Gas (for heating) | |
| Federal Taxes | ||||
| Excise Tax (Cents/Litre) | 10.0 | 4.0 | - | - |
| Goods and Services Tax | 5% | 5% | 5% | 5% |
| Provincial Sales Tax (PST or HST) (1) | ||||
| Ontario | 13% | 13% | 13% | 13% |
| Quebec Sales Tax (QST) | 9.975% | 9.975% | 9.975% | 9.975% |
| Nova Scotia (2), Newfoundland and Labrador, New Brunswick and Prince Edward Island | 15% | 15% | 15% | 5% |
| Provincial Fuel Taxes (Cents/Litre) | ||||
| Newfoundland and Labrador (3) | 7.5 | 9.5 | 7.0 | |
| Prince Edward Island | 8.47 | 14.15 | ||
| Nova Scotia | 15.5 | 15.4 | 7.0 | |
| New Brunswick | 10.87 | 15.45 | 6.7 | |
| Quebec (4) | 19.2 | 20.2 | ||
| Ontario (5) | 9.0 | 9.0 | 4.3 | |
| Manitoba | 14.0 | 14.0 | 3.0 | |
| Saskatchewan | 15.0 | 15.0 | 9.0 | |
| Alberta (6) | 0 | 0 | 0 | |
| British Columbia – Vancouver Area (7) | 27.00 | 27.50 | 2.7 | |
| British Columbia – Victoria Area (7) | 20.00 | 20.50 | 2.7 | |
| British Columbia – Rest of province (7) | 14.50 | 15.00 | 2.7 | |
| Yukon | 6.2 | 7.2 | ||
| Northwest Territories (8) | 10.7/6.4 | 9.1 | ||
| Nunavut | 6.4 | 9.1/3.1 | ||
| Federal and Provincial Carbon Levies (Cents/Litre) | ||||
Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Yukon, Nunavut (9) |
14.31 |
17.38 |
10.06 |
$3.38713/GJ (12.39 - cents/m3) |
British Columbia |
14.31 |
16.85 |
10.06 |
$3.2384/GJ (12.43- cents/m3) |
Newfoundland and Labrador |
11.05 |
13.41 |
7.74 |
$2.628908/GJ (9.79 - cents/m3) |
Nova Scotia (10) |
1.1 |
1.3 |
0.7 |
$0.2352/GJ (1.2 - cents/m3) |
Prince Edward Island |
11.05 |
13.41 |
0 |
0 |
Quebec (11) |
19.20 |
20.20 |
19.20 |
0 |
Northwest Territories (12) |
14.31 |
17.38 |
10.06 |
$3.38713/GJ (12.39 - cents/m3) |
Notes:
Rates in the above table were last updated in May 2023
- Alberta has suspended the collection of the provincial fuel tax on gasoline and diesel until at least June 30, 2023.
- In Ontario, effective July 1, 2022 until December 31, 2023, the gasoline fuel tax rate was reduced from 14.3 cents per litre to 9.0 cents per litre, representing a cut of 5.3 cents per litre. This temporary tax cut (5.3 cents per litre) was also applied to clear diesel (including blended), clear kerosene and biodiesel.
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