Gas and fuel tax rate decrease
Learn about the decrease to the gasoline and fuel tax rates between July 1, 2022 and June 30, 2024.
Gasoline Tax Fuel Tax International Fuel Tax Agreement
Information
The 2024 Ontario Budget: Building a Better Ontario is proposing to extend the current gasoline and fuel tax rate cuts for an additional 6 months.
This proposed extension would see the rate of tax on gasoline and fuel (diesel) remain at 9 cents per litre until December 31, 2024.
Overview
This information provides guidance on Ontario's gasoline and fuel tax rate decrease; it should not be considered as a substitute for the Gasoline Tax Act, Fuel Tax Act and related Regulations.
Effective July 1 to June 30, 2024, the gasoline tax rate on unleaded gasoline will decrease from 14.7 cents per litre to 9.0 cents per litre and the fuel tax rate on clear diesel (including blended), clear kerosene and biodiesel will decrease from 14.3 cents per litre to 9.0 cents per litre.
There will be no change to tax rates for leaded gasoline, propane, or aviation fuel.
The Ministry of Finance has developed a process to credit retailers, wholesalers, collectors and importers who have inventories of gasoline and/or fuel for which tax was pre-paid at the higher tax rates.
End users (for example, construction companies, farmers and federal, provincial and municipal vehicles) of fuel or gasoline are not eligible for a credit because they pay the tax at the rate that is effective at the time of the purchase. This also includes any businesses or consumers who purchase fuel or gasoline for their own commercial or personal use.
Retailers
Retailers that have inventories of gasoline and/or fuel at 12:01 a.m., July 1, 2022, for which tax was pre-paid at the higher rates are eligible to apply for a credit from their supplier.
Learn more about what the decrease means for retailers.
Wholesalers
Wholesalers that have inventories of gasoline and/or fuel at 12:01 a.m., July 1, 2022, for which tax was pre-paid at the higher rates are eligible to apply for a credit from their supplier. Wholesalers will also issue credits to their dealers.
Learn more about what the decrease means for wholesalers.
Designated collectors
Collectors who provide credits to their customers are able to claim a corresponding credit from the Ministry of Finance on their monthly gasoline or fuel tax return.
Learn more about what the decrease means for collectors.
Importers
Importers that have inventories of gasoline and/or fuel at 12:01 a.m., July 1, 2022, for which tax was pre-paid at the higher rates are eligible to claim a credit on their return. Importers will also issue credits to their dealers.
Learn more about what the decrease means for importers.
Exporters
If you are an exporter registered under the Gasoline Tax Act and/or Fuel Tax Act, you normally do not hold inventory in Ontario for an extended period of time.
If you do, please contact the Ministry of Finance at
Contact us
For any questions regarding this program, please contact us:
- by phone:
1-866-668-8297 ext. 16011 - by email: commodity.tax@ontario.ca
Stay connected
For up-to-date information on changes about the gasoline and fuel tax programs please subscribe to the Ministry of Finance’s email alert service.