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Gasoline Tax Rates

Effective 12:01 a.m. Monday, April 1, 2013 the taxes levied on gasoline and diesel oil sold in Prince Edward Island were changed from a blended tax (fixed plus ad valorem rate) to a fixed rate of tax.

With the removal of the ad valorem component from the tax on gasoline and diesel oil, it is no longer necessary to issue monthly Gas Tax Notice updates on the gasoline tax rates in Prince Edward Island.  The fixed rates of tax identified below will remain constant until further notice.

 

 

Product

Tax Rate per litre
Effective April 1, 2013

Gasoline

13.1 cents

Diesel oil

20.2 cents

Propane used as fuel in an internal
combustion engine

0.0 cents

Aviation fuel

0.7 cents

 



Historical Gasoline & Diesel Tax Rates:

Rates of tax for gasoline and diesel fuel date back to the first setting of a tax rate on May 1, 1924.

Beginning in 1980, the tax rates on gasoline and diesel fuel were based on a percentage (ad valorem) of the normal retail selling price as defined in Sections 3 and 6 of the Gasoline Tax Act. On April 12, 1994, with the presentation of the 1994 Budget, the province changed from an ad valorem rate to a fixed rate of tax on gasoline and diesel oil effective April 13, 1994.

Effective April 8, 2005, the method of calculation of provincial tax on gasoline and diesel oil changed to a blended tax, comprised of a volume based amount of tax per litre, plus an ad valorem rate of tax applied to the average wholesale prices of gasoline and diesel oil.

Effective April 11, 2007, the ad valorem component of the blended tax is capped at a maximum of 8.7 cents per litre.

Effective June 28, 2007, the calculation of provincial tax on gasoline changed. The component of the tax that is a volume-based amount of tax per litre decreased from 11.5 cents to 7.1 cents per litre.

Effective April 1, 2013 the gasoline and diesel oil tax rates were set at a fixed amount per litre.  The ad valorem component of the tax rates was removed.

The following is a historical summary of the gasoline and diesel fuel tax rates.

 

Please note:
This page is prepared for information purposes only, and should not be considered a substitute for the applicable statutes. Should there be any conflict between the contents of this page and the statutes, the statutes shall prevail.
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