For additional information on the Federal Fuel charge, please contact the Canada Revenue Agency at 1-866-330-3304.
The Federal Fuel Charge (or ‘FFC’, commonly called the Carbon Tax) is mandated under the Greenhouse Gas Pollution Pricing Act and goes into effect in Nova Scotia on July 1, 2023. You will notice this additional federal fuel charge on your invoices as “Federal Fuel”.
The Federal Fuel Charge will vary by the petroleum product you purchase. The following rates will be effective on April 1st, 2024:
Type of Fuel | Federal Fuel Charge |
Gasoline | $0.1761 per litre |
Light fuel oil (Diesel – clear and dyed) (Furnace oil/Therma clean) | $0.2139 per litre |
Kerosene | $0.2065 per litre |
Propane | $0.1238 per litre |
Are you exempt?
Certain customers are exempt from paying the Federal Fuel Charge. The following table outlines who qualify for the exemption:
Category of Customer | Federal Exemption Certificate | Eligible customers can download their exemption forms here |
Farmer for gasoline, light fuel oil | L402 Fuel Charge Exemption Certificate for Farmers | Farmers – https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/l402.html |
Fisher for gasoline, light fuel oil | L403 Fuel Charge Exemption Certificate for Fishers | Fishers – https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/l403.html |
Registered distributor | L401 Fuel Charge Exemption Certificate for Registered Distributors | |
| Partial exemption at 80% for Propane supplied to Greenhouse operator | L404 Fuel Charge Exemption Certificate for Greenhouse Operators | Greenhouse Operator – https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/l404.html |
If you are exempt, you must provide a copy of the exemption certificate in advance of any delivery occurring on or after July 1, 2023. Please include your account number when submitting the certificate.
Exemption Certificates need to be received and on customer files before we can sell fuel exempt from the FFC. Federal rules do not permit issuing refunds of the Federal Fuel Charge if a certificate is received after the delivery.
If you qualify as an exempt customer, it is important that you provide the Exemption Certificate to us as soon as possible. The certificate can we sent to accountsreceivable@westnova.ca or PO Box 880, 73 Falkland St. Lunenburg, Nova Scotia B0J 2C0.
Relief for Individuals
There is a relief for the Federal Fuel Charge paid by individuals. The Climate Action Incentive Payment (CAIP) is a tax-free amount paid to help individuals, and families offset the cost of federal pollution pricing. It consists of a basic amount and a supplement for residents of small and rural communities. Residents of Nova Scotia will receive three quarterly payments (July 2023, October 2023, and January 2024) in the first year and four payments in the years after that. These quarterly tax-free payments will be made through a Government of Canada benefit system.
You are eligible for this rebate payment if you are a resident of Canada for income tax purposes in the month before and at the beginning of the month in which the CRA makes a payment. To be eligible, you must also be a resident of an eligible CAIP province on the first day of the payment month.
You do not need to apply to receive the payment for the CAIP. The Canada Revenue Agency (CRA) will determine your eligibility when you file your income tax and benefit return and will send you payments if you are entitled to them. The following table outlines the currently proposed payments:
Category of Customer | Quarterly Payment Amount paid by the Government of Canada |
First Adult | $124 per quarter |
Second Adult | $62 per quarter |
Each Child | $31 per quarter |
Family of 4 | $248 per quarter |
More Information
For more information on the Climate Action Incentive Payment, please refer to the following website:
https://www.canada.ca/en/revenue-agency/services/child-family-benefits/cai-payment.html#toc1, or contact the Canada Revenue Agency.
For more information on the Federal Fuel charge, please refer to the following website: https://www.canada.ca/en/revenue-agency/services/tax/excise-taxes-duties-levies/fuel-charge.html, or contact the Canada Revenue Agency at 1-866-330-3304.
If you are receiving a mailed copy of this notification, please consider providing your local branch with an email address that can be used for future correspondence associated with the Federal Fuel Charge and other matters.
As of July 1st, 2023 the Greenhouse Gas Pollution Pricing Act, administered by the Canadian Revenue Agency will implement a federal carbon pollution pricing system whereby consumers of petroleum products will be charged a price per litre based on the type of fuel. Elsewhere in Canada this also known as the “Carbon Tax”.
The charge will appear on a separate line on invoices/delivery tickets much like Excise Tax or HST. Below are the rates:
Type of Fuel | Federal Fuel Charge |
Gasoline | $0.1431 per litre |
Light fuel oil (Diesel – clear and dyed) (Furnace oil) | $0.1738 per litre |
Kerosene | $0.1678 per litre |
Propane | $0.1006 per litre |
Fuel suppliers will remit the funds collected to CRA. CRA will return all direct proceeds from the federal system to the province or territory where they were collected.
Customers who are exempt from the Federal Fuel are categorized below:
Category of Customer | Definition |
Farmer for gasoline, light fuel oil | A person that carries on a farming business with a reasonable expectation of profit. |
Fisher for gasoline, light fuel oil | A person that carries on a fishing business with a reasonable expectation of profit. |
Registered distributor | A registered distributor in respect of that type of fuel |
Registered road carrier | A registered specified commercial vehicle in respect of that type of fuel if the fuel is qualifying motor fuel |
Partial exemption at 80% for Propane supplied to Greenhouse operator | A greenhouse operator, as proposed in the Backgrounder, if the fuel is qualifying greenhouse fuel |
For additional clarification contact CRA at 1-866-330-3304
Note: Customers are required to have exemption certificates on-hand at the time of sale. Federal rules do not permit issuing refunds of the Federal Fuel Charge if a certificate is received after delivery. To avoid any complications, if applicable, please provide the Exemption Certificate to West Nova Fuels as soon as possible.
Eligible customers can download their exemption forms here:
There is relief for the Federal Fuel Charge paid by individuals. You are eligible for this rebate payment if you are a resident of Canada for income tax purposes in the month before and at the beginning of the month in which the CRA makes a payment. To be eligible, you must also be a resident of an eligible CAIP province on the first day of the payment month. You do not need to apply to receive the payment for the CAIP. The Canada Revenue Agency (CRA) will determine your eligibility when you file your income tax and benefit return and will send you payments if you are entitled to them.
Q: How much will I receive from CRA?
A: The following table outlines the currently proposed payments:
Category of Customer | Quarterly Payment Amount paid by the Government of Canada |
First Adult | $124 per quarter |
Second Adult | $62 per quarter |
Each Child | $31 per quarter |
Family of 4 | $248 per quarter |
You will be charged the Federal Fuel Charge on that delivery
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