Gasoline Tax - Introduction
This section provides general information on Gasoline Tax including legislative authority, fuel type definitions and remittance requirements.
What is Gasoline Tax?
Gasoline is defined as a product distilled from petroleum, which, by burning, develops the power required for operating internal combustion engines, and includes every other liquid product, such as aviation fuel, that fulfils the same purpose and determined to be gasoline, except diesel oil and propane.
Diesel oil is defined as a product distilled from petroleum that is capable of developing the power required for operating internal combustion engines. Diesel oil is also commonly known as semi-diesel oil or fuel oil, and includes furnace oil and any other products determined to be diesel oil.
Aviation fuel is defined as any gas or liquid that is sold to be used or is used to create power to propel an aircraft and includes any product that is designated to be aviation fuel by the regulations.
How is Gasoline Tax collected?
Gasoline tax is collected from petroleum retailers at the wholesale level by petroleum wholesalers. Petroleum wholesalers must register with the Island Regulatory and Appeals Commission (IRAC) to obtain a license to operate in the Province. The petroleum wholesalers must also enter into a Wholesaler Agency Agreement with the Department of Finance to collect and remit gasoline tax.
Registered petroleum wholesalers must remit gasoline tax to the Department of Finance, Taxation and Property Records Division, on or before the 25th day of each month using the Generic Fuel Tax Return as developed by the Canadian Fuel Tax Council.
How do consumers pay Gasoline Tax?
Gasoline tax is included in the pump price of fuel paid by consumers. Petroleum retailers must register with the Island Regulatory and Appeals Commission (IRAC) to obtain a license to operate in the Province. Petroleum retailers are reimbursed for the gasoline tax paid to petroleum wholesalers by collection of the tax from consumers.
What makes up the price of gasoline at the pumps?