Changes to the Federal Fuel Charge (Carbon Tax) Rates

The Federal Fuel Charge (Carbon Tax) will be increasing on April 1, 2020 in all applicable provinces, including Alberta and Saskatchewan. The new Fuel Charge rates 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

As a reminder, the Federal Government has announced targeted relief for certain sectors including but not limited to, a farmer, if and only if all 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.

See Form L402 Fuel Charge Exemption Certificate for Farmers fillable pdf. Each qualified farming customer should complete this form as soon as possible and provide a copy to their fuel supplier and retain a copy for themselves.

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 here to support you with any questions you have.

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

Visit Canada Revenue Agency - Fuel Charge Information
Call: 1-866-959-7797

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Changes to the Federal Fuel Charge (Carbon Tax) Rates

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