Federal vs. provincial fuel taxes in Canada

What exactly are you paying for at the pump? In Canada, the price of fuel includes several taxes, including federal excise tax, provincial fuel taxes, and GST/HST (and QST in Quebec). The exact amount depends on your province and government policy, so the total tax paid at the pump can vary significantly across Canada.

This guide will help you understand the additional fees embedded in your next fuel up. If you're looking for more ways to reduce your overall energy costs, see how Jotson helps Alberta and Ontario homeowners track their fuel, electricity, and natural gas use in one place.

Federal Taxes

Federal Excise Tax

Under normal rates, the federal excise tax is 10 cents per litre on gasoline and 4 cents per litre on diesel. These rates have been in effect since 1995 for gasoline and 1987 for diesel.

Temporary suspension (April–September 2026)

On April 14, 2026, the Government of Canada announced a temporary suspension of the federal fuel excise tax to provide relief from higher fuel prices. The suspension sets the federal excise tax on gasoline and diesel to 0 cents per litre from April 20 through September 7, 2026.

Because this measure is temporary, it's worth checking current federal announcements if you're looking for the latest fuel tax rates.

Federal Fuel Tax (aka. Federal Carbon Tax)

Until 2025, many Canadians paid a federal fuel charge — often referred to as the federal carbon tax — applied to gasoline, diesel, and other fuels in provinces and territories covered by the federal system.

Effective April 1, 2025, the federal government set the consumer fuel charge to zero. You no longer pay the federal fuel charge when purchasing gasoline or diesel.

Carbon pricing for large industrial facilities continues through separate federal and provincial industrial pricing systems.

Sources: (Canadian Gov)

GST/HST

The federal 5% Goods and Services Tax (GST) applies to fuel purchases across Canada. In provinces that use the Harmonized Sales Tax (HST), the federal and provincial portions are combined into one tax collected at the pump.

GST and HST are percentage-based taxes applied to the purchase price, including other applicable fuel taxes. This is why fuel pricing is often described as including a "tax on tax."

Quebec is an exception, where both GST and the Quebec Sales Tax (QST) apply separately.

Note: Although GST is a federal tax, we've included it in the provincial breakdown below to help compare the total taxes that apply across different provinces.

Sources: (Canadian Gov) (Annual Gas Tax Honesty Report)

Provincial Fuel Taxes Breakdown

Alberta

Gasoline: 13 cents per litre
Diesel: 13 cents per litre
GST: 5%

Alberta generally enjoys some of the lowest provincial fuel taxes and their oil-price-based fuel tax relief program gives additional relief from provincial fuel taxes when oil prices are high. Fuel taxes are revised quarterly and can be as high as 13 cents per litre or as low as zero, depending on international crude oil prices.

Note: Alberta temporarily paused the fuel tax for the full 2023 year and applied a reduced rate for the first three months of 2024.

Sources: (Alberta Gov)

British Columbia

Gasoline:
- Vancouver area: 27 cents per litre
- Victoria area: 20 cents per litre
- Rest of BC: 14.5 cents per litre
Diesel:
- Vancouver area: 27.5 cents per litre
- Victoria area: 20.5 cents per litre
- Rest of BC: 15 cents per litre
GST: 5%

In Vancouver and the surrounding area, fuel taxes are significantly higher due to an additional 18.5 cents per litre transit tax. The Victoria area has a dedicated 5.5 cents per litre transit tax.

British Columbia eliminated its consumer carbon tax effective April 1, 2025. Provincial motor fuel taxes and applicable regional transit taxes remain in effect.

Sources: (BC Gov)

Manitoba

Provincial tax breakdown:

Gasoline: 12.5 cents per litre
Diesel: 12.5 cents per litre
GST: 5%
PST: Not applied to fuel

Sources: (Manitoba Gov)

New Brunswick

Gasoline: 10.87 cents per litre
Diesel: 15.45 cents per litre
HST: 15%

Sources: (New Brunswick Gov)

Newfoundland and Labrador

Gasoline: 7.5 + 5.40 cents (Carbon Price Adjustment*) per litre
Diesel: 9.5 + 6.02 cents (Carbon Price Adjustment*) per litre
HST: 15%

*What is the Carbon Price Adjustment? This adjustment lets fuel suppliers recover some of the cost of meeting the federal Clean Fuel Regulations through regulated pump prices.

Sources: (Newfoundland Gov)

Nova Scotia

Gasoline: 15.5 + 3.74 cents (clean fuel adjuster charge) per litre
Diesel: 15.4 + 4.17 cents (clean fuel adjuster charge) per litre
HST: 14%

Nova Scotia applies 14% HST to the retail price of gasoline and diesel, including applicable per-litre taxes and price adjustments.

What is the clean fuel adjuster? This adjustment lets fuel suppliers recover some of the cost of meeting the federal Clean Fuel Regulations through regulated pump prices.

Sources: (Nova Scotia Gov)

Northwest Territories (NWT)

Gasoline: 10.7 cents per litre
Diesel: 9.1 cents per litre
GST: 5%

Carbon tax: Effective April 1, 2025, the Northwest Territories began providing at-source carbon-tax rebates for consumers other than large emitters. As a result, the territorial carbon tax is not added to ordinary consumer fuel purchases, although the industrial carbon-pricing system remains in place for large emitters.

Sources: (NWT Gov)

Nunavut

Gasoline: 6.4 cents per litre
Diesel: 9.1 cents per litre
GST: 5%

Sources: (Nunavut Gov)

Ontario

Gasoline: 9 cents per litre
Diesel: 9 cents per litre
HST: 13%

While fuel taxes are one part of your household energy costs, Ontario homeowners can often save on electricity by choosing the right pricing plan. If your utility supports Green Button, Jotson can automatically import your electricity data to compare Time-of-Use, Tiered, and Ultra-Low Overnight pricing using your actual electricity usage.

Sources: (Ontario Gov)

Prince Edward Island

Gasoline: 8.47 + 4 cents (clean fuel adjuster charge) per litre
Diesel: 14.15 + 3.3 cents (clean fuel adjuster charge) per litre
HST: 15%

What is the clean fuel adjuster? In provinces where fuel prices are regulated, the provincial regulator may allow suppliers to pass some of the cost of meeting federal Clean Fuel Regulations on to drivers.

Sources: (PEI Gov)

Quebec

Gasoline:
- Montreal: 22.2 cents per litre
- Rest of Quebec: 19.2 cents per litre
Diesel:
- Montreal: 23.2 cents per litre
- Rest of Quebec: 20.2 cents per litre
GST: 5%
QST: 9.975%

In addition to the fuel tax, both GST and QST (Quebec Sales Tax) apply to sales of fuel. Quebec also imposed a reduced fuel tax rate in certain regions, such as those bordering another Canadian province or a U.S. State.

Carbon pricing: Quebec continues to operate a cap-and-trade system. Fuel distributors must account for the emissions associated with the fuels they sell, and those compliance costs may be reflected in retail fuel prices.

Sources: (Quebec Gov)

Saskatchewan

Gasoline: 15 cents per litre
Diesel: 15 cents per litre
GST: 5%
PST: Not applied to fuel

Sources: (Saskatchewan Gov)

Yukon

Gasoline: 6.2 cents per litre
Diesel: 7.2 cents per litre
GST: 5%

Sources: (Yukon Gov)

Average percentage of tax vs. fuel (as of the end of 2025)

Source: (Annual Gas Tax Honesty Report)

Fuel taxes are only part of your energy costs

Fuel taxes are just one factor that affects what you pay at the pump. Depending on where you live, federal and provincial taxes, sales tax, and regional levies can all contribute to the final price of gasoline and diesel. Since these taxes and policies change over time, it's worth checking current government sources for the latest rates in your province.

Of course, fuel is only one part of your household energy costs. With Jotson, you can track your vehicle fuel, electricity, and natural gas spending in one place, giving you a clearer picture of where your money is going.