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Carbon Levy

The provincial government of Prince Edward Island will be mandating a carbon levy on April 1, 2019. Users of certain fuels will notice this additional carbon charge on statements and invoices. Certain users of some industries may be exempt from federal fuel charges on diesel and gas. Please refer to the questions and answers below to find additional information and links to exemption forms.

What is the carbon levy?

The carbon levy, administered by the provincial government, is a carbon pricing plan for consumers of certain fuel products.

When do the new rates come into effect?

Carbon pricing will begin on April 1, 2019.

Will I be charged more for my furnace oil?

No, there will be no carbon charges added to your furnace oil price for the first two years of implementation.

What fuels are subject to carbon levy charges? Do they vary by product?

Please see table below:

Fuel TypeCarbon charge on April 1, 2019

Furnace

$0.0000 per litre

Marked Gasoline

$0.0100 per litre

Marked Diesel

$0.0100 per litre

Gasoline

$0.0442 per litre

Diesel

$0.0537  per litre

Light Fuel Oil

$0.0537  per litre

Heavy Fuel Oil

$0.0637 per litre


For a detailed list of fuel charges by product, please see here.

Will the carbon levy charge be itemized on statements and invoices?

Yes. It will appear as an itemized ‘Carbon’ charge on your statements and invoices. For cardlock accounts, it will appear as an itemized ‘Carbon’ charge on your statements and invoices.

Are certain customers exempt from the federal fuel charge?

Yes, certain categories of customers who have a ‘Marked Fuel Permit’ under the Gasoline Tax Act are exempt from paying the carbon levy.

What types of industries can participate in the marked fuel program?

Under the Gasoline Tax Act, these industries may be eligible for a carbon exemption for marked gasoline or marked diesel:

  • Farming
  • Fishing
  • Aquaculture
What is a Levy Exemption Permit?

Under the Climate Leadership Act, a "Levy Exemption Permit" can be issued to fishers, aquaculturists, farmers and custom agricultural contractors. These levy exemption permits are a combined permit with the "Marked Gasoline / Marked Diesel Oil Permit". The combined permits become effective April 1, 2019.

There are various rules, fees, and forms associated with the exemption permits. In some cases, they expire and need to be renewed annually. Please be sure to get in touch with the provincial government with your questions to confirm your responsibilities. You can access more info here:

Are exemptions available for First Nations individuals?

Yes, Under Section 87 of the Indian Act, First Nation individuals living on a reserve will be exempt from carbon pricing on all fuels delivered to the reserve. These exemptions will apply to interjurisdictional marine and air carriers.

Do I need to provide my local branch with a copy of my exemption certificate?

Yes. Holders of exemption permits must submit a copy of a valid permit or confirmation from the Provincial Tax Commissioner to their local branch.

What is the biggest impact of carbon pricing for consumers?

Consumers will be paying a net increase of 1 cent per litre on gasoline and diesel.

What impacts does the trucking industry face?

The PEI carbon levy will be included with the gasoline and diesel tax rate on a customer’s IFTA quarterly return. For details, please see here.

If I provide you with my exemption certificate later, can I get a credit for any carbon levy charges paid after April 1st, 2019?

No. Unfortunately, we require your exemption certificate at time of sale. We will not be able to issue a credit for any carbon levy charges prior to receiving your exemption certificate.

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