Gasoline Tax

Gasoline tax is charged on all purchases of gasoline and diesel oil used in motor vehicles and on aviation fuel designated for use in aircraft. It is included in the pump price of fuel as set by the Island Regulatory and Appeals Commission (IRAC).

Under the Gasoline Tax Act and Regulations, petroleum retailers pay the tax when they purchase from a licensed petroleum wholesaler and are reimbursed by collecting it from consumers at the pump. The wholesaler pays the collected tax through monthly remittance to the Province.

In PEI, all petroleum wholesalers and retailers are licensed to operate through the Island Regulatory and Appeals Commission.

Who determines the price of gas?

Gasoline pump prices are set by the Island Regulatory and Appeals Commission (IRAC). The formula used to determine pump prices can be found on the IRAC website.

Gasoline Tax rate is legislated. A change in rate, typically announced in the budget speech by the Minister of Finance, would initiate a legislative amendment and a Gasoline Tax Notice issued to distributors and posted to the provincial government website. Find current and historical gasoline tax rates.

Are any fuels exempt from gasoline tax?

The gasoline tax is not applied to:

  • Fuel for heating and cooking, i.e. furnace oil, propane gas, etc. (confirm)
  • Marked fuel purchased for use in agriculture, fishing, aquaculture and other operations authorized under the Gasoline Tax Act Regulations. For more information, see Marked Fuel Tax Exemption. (Link to revised content)
Published date: 
January 31, 2023

General Inquiries

Taxation and Property Records
1st Floor Shaw South, 95 Rochford Street
PO Box 2000
Phone: 902-368-4070
Fax: 902-368-6164