Payment of Fuel Tax
You must pay the fuel tax on fuel you buy in Québec. The rate of the tax is based on:
- the type of fuel
- the region
In addition to the fuel tax, the GST and QST also apply to sales of fuel.
The following are not subject to the fuel tax:
- natural gas and propane gas
- solvents derived from petroleum
- gasoline intended for chemical use
- coloured fuel oil used for heating or to operate a stationary engine or certain propulsion engines
In effect since July 1, 2023, the Program for Administering the Consumption Tax Exemption for First Nations is gradually replacing the Program for Administering the Fuel Tax Exemption for Indians, while maintaining the fuel tax exemption under the same conditions as before. The new program allows registered First Nations members, band councils, tribal councils and band-empowered entities to purchase fuel at a service station situated on a reserve or in a First Nations settlement in Québec, without having to pay the fuel tax.
For more information, see Program for Administering the Consumption Tax Exemption for First Nations.