Federal Fuel Charge
As you may be aware, our Federal Government has introduced a new carbon pricing system under the Greenhouse Gas Pollution Pricing Act (Act). The Act is administered by Canada Revenue Agency (CRA) and applies a Federal Fuel Charge (FFC) to propane, gasoline and light fuel oil (dyed diesel, clear diesel and heating/furnace oil) effective April 1, 2019
As distributors of fuel and propane, we are required to be registered with Canada Revenue Agency and are obligated to charge the Federal Fuel Charge. The rate of fuel charge for the period April 1st, 2019 to March 31st 2020 is as follows:
Gasoline: $ 0.0442 per litre
Light Fuel Oil: $ 0.0537 per litre
Propane: $ 0.0310 per litre
Under this Act, farmers do not have to register with the CRA and may be able to use an exemption certificate and benefit from not being charged the FFC. As a registered distributor, we can deliver gasoline, light fuel oil to farmers without the charge being payable as long as the gasoline, light fuel oil is for use in the course of eligible farming activities and we have a completed and signed.
Greenhouse operators do not have to register with the CRA and may be able to use an exemption certificate and benefits from not being charged the FFC. As a registered distributor, we can deliver propane to greenhouse operators without the charge being payable as long as the propane is used exclusively for heating or producing carbon dioxide for the operation of a commercial greenhouse for growing any plants and we have a completed and signed.
For more information please visit Canada.ca/cra-fuel-charge