Learn what to do to avoid paying taxes or penalties in the event of fuel contamination.

The information on this page is for bulk fuel purchasers and others with fuel storage such as:

  • farms
  • construction firms
  • trucking firms
  • service stations
  • bulk plants
  • transporters

Fuel tax refunds for contaminated products

Service stations, bulk plants, transporters and purchasers with fuel storage, such as farms, construction and trucking firms, may be eligible for a refund of tax when fuel has become contaminated.

If clear and coloured fuels become accidentally mixed, the Fuel Tax Act may permit a refund of fuel tax paid or payable on the clear fuel portion. However, selling the mixed (contaminated) fuel or dispensing it to licensed motor vehicles may result in prosecution.

For more information about tax refunds on contaminated fuel, please review Tax Refunds: Bad debts and lost, destroyed, stolen or contaminated product.

What to do

If you possess contaminated fuel, you must follow our guidelines to avoid having to pay fuel tax or a penalty related to the contaminated fuel or being prosecuted.

If clear fuel is mixed with coloured fuel, or if coloured fuel is mixed with clear fuel, immediately do the following:

  1. If the fuel delivery is still in progress, stop loading or unloading the fuel to minimize the contamination.
  2. Quarantine and put the contaminated storage tank and pump or nozzle “out of service”.

  3. Notify the Ministry of Finance:
    For any issues related to contaminated fuel, call a Field Operations Manager:

    You must contact the ministry without delay. Please note that failure to contact the ministry immediately may result in having to pay fuel tax or a penalty related to the contaminated fuel, or liability for prosecution. Calls after hours, on weekends and on holidays will be responded to on the next business day.

    If a Field Operations Manager is not available be prepared to leave a message with the following information:

    • your name
    • company name, address and phone number
    • date, time and location of the contamination
    • tank number(s) involved
    • nature of the contamination, that is, the types and respective volumes of the fuels involved
    • if any, how much contaminated fuel was sold or dispensed to licensed motor vehicles before the contamination was discovered
  4. Record the plate number and vehicle description, driver’s name and phone number for any licensed motor vehicles supplied with the contaminated fuel.
  5. Take a volume measure “dip reading” of the contaminated storage tank.
  6. If clear fuel storage is affected, quarantine or return the contaminated product to the supplier.
  7. If coloured fuel storage is affected, do not use until authorized to do so by the ministry.
  8. If tank is refilled, take a further “dip reading” when completed.
  9. Note down and keep the following information and documents for the ministry to collect at the time of inspection:
    1. fuel delivery invoice/Bill of Lading
    2. all dip readings including of the tank contents before the mistaken delivery
    3. a record of the date and time of the delivery
    4. a record of contaminated fuel sold or dispensed after the delivery
    5. details of motor vehicles fueled with contaminated fuel
    6. receipt or invoice for the tank pump out and, if applicable, disposal of the product
    7. fuel delivery invoice or Bill of Lading for the replacement fuel, if any

Contact us

If this page does not completely address your particular situation, refer to the Fuel Tax Act and related regulations or contact:

Ministry of Finance
Compliance Branch
Inspections Section
33 King Street West
Oshawa ON L1H 8H9