Here’s how much you’re paying in fuel tax in each western Canadian province

By: Brendan Ellis

Many jurisdictions across Canada, including the federal and provincial governments, implement a fuel tax on purchasers and importers of gas.  

While the tax is paid by the respective companies that produce and import gas, the costs are often passed down to consumers at the fuel pump. These taxes can be exempt to help lessen the stress on consumers.  

The Government of Canada announced plans to temporarily suspend its fuel tax, starting on April 20. The suspension intended to save consumers at the pump as fuel costs rose due to conflict in the Middle East.  

This is just one recent example of a situation where Canadian governments have suspended or adjusted fuel taxes in light of global instability.    

Here’s a look at some of the fuel tax rates that are usually applied in British Columbia, Alberta, Saskatchewan and Manitoba.

Federal government

The federal fuel excise tax rate is 10 cents per litre on gasoline and unleaded aviation gasoline, and four cents per litre on diesel fuel and aviation fuel, when it is in effect.  

Heating oil is exempt from the tax, and there is no federal tax on natural gas or propane.  

Provincial governments also collect gas and diesel taxes, which vary by province. Three municipalities – Vancouver, Victoria and Montreal – also apply taxes on gasoline.  

British Columbia

British Columbia’s fuel tax rates vary by region. 

Three organizations – the B.C. Transportation Financing Authority (BCTFA), the South Coast British Columbia Transportation Authority (TransLink – Vancouver Area) and the British Columbia Transit (BC Transit – Victoria Area) – charge dedicated taxes based on where gas is purchased and sold.  

In the Vancouver area, the combined motor fuel tax rate per litre of clear gasoline, which is used in motor vehicles, is 27 cents, including 1.75 cents to general revenue, 6.75 cents to BCTFA and 18.5 cents to TransLink. 

In the Victoria area, the rate is 20 cents per litre, including 7.75 cents to general revenue, 6.75 cents to BCTFA and 5.50 cents to BC Transit – Victoria. 

Throughout the rest of B.C., the rate is 14.5 cents per litre, including 7.75 cents to general revenue and 6.75 cents to BCTFA.  

For clear diesel, the combined rates are 27.5 cents per litre in the Vancouver area, 20.50 cents in the Victoria area and 15 cents throughout the rest of B.C.  

Alberta

Alberta’s fuel tax is set at 13 cents per litre, but it can be lowered depending on oil prices.  

The province has implemented a fuel tax relief program that allows for the fuel tax on gasoline and diesel to be suspended or adjusted when the price of a barrel of West Texas Intermediate oil reaches certain thresholds. 

The fuel tax will be fully suspended whenever prices are at or above $90 a barrel. A partial tax of 4.5 cents per litre will be applied when prices are between $85 and $89.99 per barrel. Then when prices are between $80 to $84.99, a partial fuel tax of nine cents per litre is applied.  

The 13-cent fuel tax is reinstated when oil prices fall below $80 a barrel. The tax is adjusted quarterly, but the rates cannot increase more than nine cents per litre per quarter, when oil prices dip.  

The oil price is based on a 20-day trading average as the calendar approaches the next quarter. 

Saskatchewan

Saskatchewan imposes a flat tax on fuel purchased and imported in the province. 

The rate is 15 cents per litre of gasoline and diesel, nine cents per litre on propane and 1.5 cents per litre on aviation gas and jet fuel.  

The licensed importers who purchase or import fuel into the province for retailers or bulk dealers collect and remit the tax.  

Manitoba

Manitoba’s gas tax is set at 12.5 cents per litre. That tax rate applies to clear gasoline and diesel.  

Other fuel products are taxed at lower rates, such as railway diesel (6.3 cents per litre), propane and butane (3.0 cents per litre) and aviation fuel (3.2 cents per litre). 

Other jurisdictions

Here’s a look at the other provincial and territorial fuel taxes on gasoline, as of April 2026: 

  • Newfoundland and Labrador: 7.5 cents per litre 
  • Prince Edward Island: 8.47 cents per litre 
  • Nova Scotia: 15.5 cents per litre 
  • New Brunswick: 10.87 cents per litre 
  • Quebec: 19.2 cents per litre 
  • Ontario: 9.0 cents per litre 
  • Yukon: 6.2 cents per litre 
  • Northwest Territories: 10.7 cents per litre 
  • Nunavut: 6.4 cents per litre 

Brendan Ellis is a Communications Specialist with the Canada West Foundation.