Gasoline Tax - Introduction
This section provides general information on Gasoline Tax including legislative authority, fuel type definitions and remittance requirements.
What amendments have been made to the Gasoline Tax Act?
Amendments to the Gasoline Tax Act have recently been passed in the PEI Legislature (Bill 58). As a result of these amendments, there will be a decrease in the provincial gasoline tax on clear gasoline and clear diesel effective January 1, 2019. Petroleum retailers may be eligible for a gas tax refund on the tax-paid gasoline that they have in on-hand inventory on the date of the gasoline tax rate change. Gas Tax Notice (GTN:293) provides additional details to petroleum retailers on how they can apply for the gas tax refund. The Retailer's Gasoline Tax Refund application is also available online. Bill 58 provides details on the new gasoline tax rates that take effect on January 1, 2019. An additional Gas Tax Notice and Gasoline Tax Refund application will be issued later in 2019 for the January 1, 2020 tax decrease.
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. Information on how to complete the return is outlined on Instructions for the Completion of Generic Fuel Collector Report
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?