Tax and Revenue Administration Fuel Tax Act Information Circular FT-2

FT-2/ March 2007

ALBERTA FUEL TAX ACT INFORMATION CIRCULAR - TAX RATES

(Effective April 1, 2007)

NOTE: This Information Circular is intended to explain legislation and provide specific information. Every effort has been made to ensure the contents are accurate. However, if a discrepancy should occur in interpretation between this Information Circular and governing legislation, the legislation takes precedence.

FUEL TAX RATES

This Information Circular sets out the current fuel tax rates for fuels sold in Alberta.  

1. The rates of fuel tax are:
   
   

   Gasoline (all grades)	9 cents per litre
   Diesel Fuel (all grades)	9 cents per litre
   Biodiesel	9 cents per litre
   Ethanol	9 cents per litre
   Aviation Fuel	1.5 cents per litre
   Locomotive Fuel	1.5 cents per litre
   Liquefied Petroleum Gas	6.5 cents per litre
   Marked Gasoline	Nil
   Marked Diesel	Nil

Locomotive Fuel

2. Locomotive fuel is currently taxed at the rate of 1.5 cents per litre based on consumption in Alberta. The tax is payable by the railway.

Liquefied Petroleum Gas (LPG)

3. Every distributor of LPG currently pays a tax of 6.5 cents per litre on LPG delivered into a dispensing system capable of being used to dispense LPG for motive use.
   
   
4. When the following fuels are used by a consumer to generate motive power by means of an internal combustion or turbine engine the rates of fuel tax are:
   
   

   Bunker Fuel	9 cents per litre
   Kerosene	9 cents per litre
   Methanol	9 cents per litre
   Condensate	9 cents per litre

   
   
5. Fuel tax applies on the volume of fuel, including additives.
   
   
6. Natural gas is not taxed under the Fuel Tax Act.