Federal Fuel Charge (Carbon Tax) coming to Alberta

This is a preliminary communication regarding the forthcoming implementation of the Federal Fuel Charge (Carbon tax) being imposed in the Province of Alberta.

Effective January 1, 2020 the Fuel Charge rates in $ per litre are as follows for fuel products sold at UFA:

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

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.

As soon as the Federal Government updates their exemption certificate to include the province of Alberta, we will be sending out letters and exemption certificates to our actively purchasing AFFB Permit holders. These UFA members will need to complete the exemption certificates and send them back to UFA’s Petroleum Pricing Group by December 31, 2019 to ensure that the Federal Fuel Charge (Carbon Tax) is not applied to applicable fuel products in the new year. Failure to complete and submit the form will result in Federal Fuel Charge (Carbon Tax) being applied to fuel purchases come January 1, 2020.

View full details on the Greenhouse Gas Pollution Pricing Act here.

If you have any questions, please contact Petroleum Pricing at 403-570-4466 or Pricing.Group@UFA.com

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Federal Fuel Charge (Carbon Tax) coming to Alberta

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