Regarding Natural Gas

For buyers: all purchases of natural gas are subject to PST (7%) and ICE Fund tax (0,4%) unless exclusions are applicable.

For sellers: all sellers of natural gas obliged to register with the ministry and charge PST and ICE Fund tax from their buyers, unless exclusions are applicable. All possible exclusions you can find in Bulletin MFT-CT 005, Tax Rates on Fuel.

Regarding Propane

All buyers of a propane must pay Motor Fuel Tax. The cost of MFT is 2.7 cents per 1 litre. All sellers of a propane are to pay assurance on propane purchased with the purpose of resale.

Regarding Heating Oil

Any type of gas that is bought with the purpose of use in internal combustion engine is subject to MFT. Although some substances (including heating oil and non-motor fuel oil) may be excluded from MFT if they are bought without intention to use them in internal combustion engine. Nevertheless, they are subject to PST.

Rules on Colouring Heating Oil

According to MFTA a person is not allowed to colour heating oil or non-motor fuel oil unless he acquires permission for this activity from the ministry. The right to colour heating oil can not be transferred to another person.

If a person has permission to colour fuel, it means he is authorized to colour heating oil and non-motor fuel oil.

Sales of Heating Oil

If a person is allowed to sell coloured fuel oil under MFTA, it means he is also allowed to sell coloured heating oil. If a person is not allowed to do so, he can apply to the ministry to acquire permission.

It is prohibited to sell non-coloured heating oil. This rule doesn't apply to non-motor fuel oil.

Relabeling of Heating Oil

Relabeling of heating oil and using it for sale as diesel oil is strictly forbidden under MFTA. If a seller buys heating oil, he has to resell it as a heating oil.

Where You Can't Use Heating Oil?

MFTA prohibits the use of heating oil or non-motor fuel oil in internal combustion engine, furnace, boiler or open flame burner(unless heating oil is coloured).

For violation of this rule u will be charged MFT (15 cents per litre) plus penalties (up to 45 cents per litre).

Sales of Gasoline

Liquids that are identical to gasoline in their chemical structure are not subject to MFT. Although, it is subject to PST at the rate of 7%.

Modification of Use of Fuel

According to MFTA all fuels that were used differently from initial purpose of use are subject to tax. In this case you must pay the difference between MFT that you've paid according to initial purpose and MFT that you would have paid for the fuel purchased for the new purpose.