Gas and fuel tax rate decrease
Learn about the decrease to the gasoline and fuel tax rates between July 1, 2022 and December 31, 2023.
TThe Ontario government is extending the cuts to the gas tax and fuel tax rates so that the rate of tax on gasoline and fuel (diesel) will remain at 9 cents per litre until December 31, 2023.
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 December 31, 2023, 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 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 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.
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.
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.
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
For any questions regarding this program, please contact us:
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.