Soon, Alberta may stop selling dyed gasoline and diesel. During part of the summer, the Alberta government gathered feedback on the idea of eliminating marked fuel, which can be purchased by farmers and other users at a lower tax rate.
The lower taxes on farm fuel will remain, but the dye would be eliminated.
“Under this proposal, the reduced tax rate would apply to clear fuels and new controls would be implemented to ensure the fuel is being used for eligible purposes,” says a provincial website explaining the concept.
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The fuel tax rate on marked fuel is four cents per litre, compared to 13 cents on clear fuel.
“Fuel sellers would acquire clear fuel at the full tax rate and would then apply for a refund for the tax difference on the fuel sold at the partially exempt rate to eligible consumers,” says a government document on the proposed changes.
“Marked fuel would no longer be sold to end consumers in Alberta.”
The change would affect the cash flow of fuel retailers. They would have to wait for the refund on the tax that wasn’t charged to the eligible buyer.
Fuel sellers wouldn’t have to add dye to gas and diesel, or deliver four different types of fuel.
“We think it (marked fuel) is outdated and we can really simplify things if we got rid of it,” Kory Kralkay, chief executive of Cornerstone Co-op in northeastern Alberta, told Lakelandtoday.ca.
The proposed changes could mean more oversight for consumers of the fuel.
“Increased likelihood of records being requested and reviewed to substantiate that fuel is used for eligible purposes,” the Alberta government says.
The public consultation for the concept ended Aug. 31. The province will use the feedback to develop an approach that works for both fuel sellers and eligible consumers, it says, with a decision expected this fall.
