Federal Fuel Charge (Carbon Tax) | UFA Co-operative Ltd.

Federal Fuel Charge (Carbon Tax)

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March 18, 2019

The new Federal Fuel Charge (Carbon Tax) will be effective April 1, 2019 in Saskatchewan, Manitoba and Ontario and July 1, 2019 in Nunavut and Yukon (collectively referred to as "Listed Provinces"). The Fuel Charge rates in $ per litre are as follows for the most commonly sold fuel products:

Type of Fuel April 1, 2019 April 1, 2020 April 1, 2021 April 1, 2022
Gasoline 0.0442 0.0663 0.0884 0.1105
Diesel 0.0537 0.0805 0.1073 0.1341
Kerosene 0.0516 0.0775 0.1033 0.1291
Methanol 0.0220 0.0329 0.0439 0.0549
Propane 0.0310 0.0464 0.0619 0.0774

The government also announced target relief for certain sectors including but not limited to:

  • a farmer if and only if all of the following criteria are met:
    • the fuel is "qualifying farm fuel" (which is defined as gasoline or diesel that is for use exclusively in the operation of eligible farming machinery and that all or substantially all of the fuel is for use in the course of eligible farming activities). [Note that propane is not exempt for farmers];
    • the fuel is delivered to the farmer at a farm or cardlock facility;
    • all or substantially all of the fuel is for use in the course of eligible farming activities; AND
    • the farmer provides (and the seller retains) an exemption certificate in this regard.
  • a fisher if and only if all of the following criteria are met:
    • the fuel is for use exclusively in an eligible fishing vessel; AND
    • all or substantially all of the fuel is for use in the course of eligible fishing activities.
    • the fisher provides (and the seller retains) an exemption certificate in this regard.
  • a greenhouse operator if and only if all of the following criteria are met:
    • natural gas and propane is used exclusively for use in the operation of a commercial greenhouse for growing any plants, including vegetables, fruits, bedding plants, cut flowers, ornamental plants, tree seedlings and medicinal plants; AND
    • all or substantially all of the greenhouse building must be used for the growing of plants; AND
    • fuel is exclusively for use in the heating of, or for the production of carbon dioxide for use in the operation of, a commercial greenhouse.
    • the greenhouse operator provides (and the seller retains) an exemption certificate in this regard.

Customers are encouraged to review the applicable regulations to determine if they may be included within one or more of these categories.

Please send in the completed exemption certificate to pricing.group@ufa.com or fax to (403) 570 -4018. Please note the UFA account number directly on the signed certificate.

If you have any questions, please feel free to give us a call at (403) 570-4466. UFA is committed to making sure you have the support needed to help navigate through this change.

Should you have questions or need more information on the Federal Fuel Charge (Carbon Tax) you can:

VisitCanada Revenue Agency - Fuel Charge Information
Email:ec.tarificationducarbonecarbonpricing.ec@canada.ca
Call:1-866-959-7797

What is UFA is doing:

UFA will have exemption certificates available for our customers to fill out at our locations that service the province of Saskatchewan. Customer invoices will show the federal fuel charge (carbon tax) as a separate line item, as well as an exemption amount if applicable.