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menu - about islandCarbon 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.
The carbon levy, administered by the provincial government, is a carbon pricing plan for consumers of certain fuel products.
Carbon pricing will begin on April 1, 2019.
No, there will be no carbon charges added to your furnace oil price for the first two years of implementation.
Please see table below:
FUEL TYPE | CARBON 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.
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.
Yes, certain categories of customers who have a ‘Marked Fuel Permit’ under the Gasoline Tax Act are exempt from paying the carbon levy.
Under the Gasoline Tax Act, these industries may be eligible for a carbon exemption for marked gasoline or marked diesel:
- Farming
- Fishing
- Aquaculture
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:
- Call: 1-833-220-1363
- Email: [email protected]
Please see below.
- Combined Gasoline Tax/Carbon Levy Form: Gasoline Tax/Carbon Levy Combined Return Form
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.
Yes. Holders of exemption permits must submit a copy of a valid permit or confirmation from the Provincial Tax Commissioner to their local branch.
Consumers will be paying a net increase of 1 cent per litre on gasoline and diesel.
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.
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.
