New fuel tax charge will be implemented on January 1, 2020
On January 1, 2020 the Federal Fuel Charge (Carbon Tax); mandated under the Greenhouse Gas Pollution Pricing Act, takes effect in Alberta. This fuel tax is already in place for our customers in Saskatchewan.
The Federal Fuel Charge amount varies by fuel product offering and the Federal Government has announced targeted relief for certain sectors and individuals, including farmers. Please refer to the FAQs below to find additional information.
Q: When Does the Federal Fuel Charge (Carbon Tax) come into effect in Alberta?
A: January 1, 2020
Q: What are the federal fuel charges? Do they vary by product?
Type of Fuel Jan 1, 2020 April 1, 2020 April 1, 2021 April 1, 2022 Gasoline 0.0442 0.0663 0.0884 0.1105 Diesel *Light Fuel Oil 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
*rates are $/Litre. View a detailed list of fuel charges by product.
Q: Will the federal fuel charge rates increase?
A: Yes, the rates increase every year on April 1st until 2022. The rates reflect a carbon pollution price of $20 per tonne of carbon dioxide equivalent (CO2e) in 2019, rising by $10 per tonne annually to $50 per tonne in 2022. The rates are based on global warming potential factors and emission factors used by Environment and Climate Change Canada.
Q: Are certain customers exempt from the federal fuel charge?
A: Yes, certain categories of customers are exempt from paying the federal fuel charge if the following criteria is met: Criteria
- Farmer for gasoline, light fuel oil (diesel)
- Fisher for gasoline, light fuel oil (diesel)
- Registered Distributor
- Registered Rail carrier
- Remote power plant operator that generates electricity for remote communities for light fuel oil
- Partial exemption at 80% for Propane supplied to Greenhouse operator
Q: Where can customers obtain their exemption forms?
A: Eligible customers can download their exemption forms here:
- Farmers: Form L402, Fuel Charge Exemption Certificate for Farmers
- Fishers: Form L403, Fuel Charge Exemption Certificate for Fishers
- Greenhouse Operator: Form L404, Fuel Charge Exemption Certificate for Greenhouse Operators
- Remote Power Plant Operator: Form L405, Fuel Charge Exemption Certificate for Remote Power Plant Operators
- Air, Marine, Rail or other Registered users: Form L401, Fuel Charge Exemption Certificate
More information on exemption forms.
Q: Are Cardlock purchases eligible for exemption?
A: Only farmers are eligible to use the exemption form L402 for qualifying purchases at a cardlock.
Q: Does the customer need to provide UFA with an exemption certificate?
A: Yes. Customers must provide a copy of the exemption certificate to UFA and retain a copy of the certificate for themselves. We require your exemption certificate at time of sale; otherwise the federal fuel charge will be applied. We will not be able to issue a credit for any federal fuel charges prior to receiving your exemption certificate.
Q: How do I submit my certificate to UFA
A: You can email a copy of the certificate to Pricing.Group@UFA.com, drop it off at your local UFA Agency or Fax it to (403) 570-4018.
Q: Do exemption certificates expire?
A: No. Exemption certificates do not expire.
Q: Will the federal fuel charge be itemized on statements and invoices?
Invoices will itemize the charge as ‘Fed Carbon Tax’ and exemptions as ‘Cert Fed Carb Tx Ex’. The charge will also be itemized on Cardlink reports. The federal fuel charge will not be called out on statements.
- Q: Where can I get more information on federal fuel charges?