BC Gas Tax: Fuel Rates, Carbon Tax, and Refunds

Fill up in British Columbia and you’re paying somewhere between roughly 32 and 45 cents per litre in combined provincial motor fuel tax and carbon tax, before federal excise tax and GST are added on top. The BC gas tax load depends on where you buy: Vancouver drivers pay the most because of a dedicated TransLink levy, Victoria sits in the middle thanks to a smaller BC Transit levy, and everywhere else pays the base rate. A federal excise tax of 10 cents per litre normally stacks on gasoline, though Ottawa suspended that charge for part of 2026. GST at 5% then applies to the whole total, fuel and taxes included.

Provincial Motor Fuel Tax Rates by Region

The Motor Fuel Tax Act sets a base tax on every litre of clear gasoline and diesel sold in the province. The rate isn’t uniform because certain regions carry transit levies on top of the base. For clear gasoline:

  • Rest of B.C. (outside Vancouver and Victoria): 14.50¢ per litre
  • Victoria area: 20.00¢ per litre, which includes a 5.50¢ BC Transit levy
  • Vancouver area: 27.00¢ per litre, which includes an 18.50¢ TransLink levy

Clear diesel runs slightly higher at each level: 15.00¢ per litre in the rest of B.C., 20.50¢ in the Victoria area, and 27.50¢ in the Vancouver area.1Government of British Columbia. Motor Fuel Tax and Carbon Tax Rates on Fuels and Substances Part of every litre goes to the BC Transportation Financing Authority, which pays for major road and bridge work. The rest goes to general revenue or, in the metro areas, to the regional transit authority.

Carbon Tax on Fuel

British Columbia’s carbon tax has been layered onto fuel since 2008. The provincial rate schedule lists it at 17.61¢ per litre on gasoline and 20.74¢ per litre on diesel.1Government of British Columbia. Motor Fuel Tax and Carbon Tax Rates on Fuels and Substances

The policy around this charge shifted in 2025. In late March 2025, the B.C. government announced it would remove the provincial carbon tax effective April 1, 2025, after the federal government signalled it was eliminating the federal consumer carbon tax.2Government of British Columbia. No Carbon Tax in B.C. as of April 1, 2025 Even so, the provincial rate page continues to list the carbon tax at the figures above, and carbon-related cost persists at the pump through other regulatory mechanisms, including B.C.’s Low Carbon Fuel Standard. In practice, plan on roughly 17 to 18 cents per litre of carbon cost on gasoline regardless of what it’s called on your receipt.

Federal Excise Tax and GST

Ottawa adds its own charges. The standard federal excise tax is 10 cents per litre on gasoline and 4 cents per litre on diesel.3Canada.ca. Temporarily Suspending the Federal Fuel Excise Tax

For 2026, there’s a break. The federal government reduced the excise tax to zero cents per litre from April 20, 2026 through September 7, 2026. On September 8, 2026, the full rates return.3Canada.ca. Temporarily Suspending the Federal Fuel Excise Tax That suspension saves 10 cents per litre on gasoline and 4 cents on diesel during the summer driving season. How quickly the saving reaches the pump depends on the retailer.

Then there’s GST. The federal 5% tax applies to the total fuel price, including the base cost and every other tax already added.4Natural Resources Canada. Fuel Consumption Levies in Canada Because it sits on top of everything, the GST portion climbs as the underlying price and tax burden climb.

Why Vancouver and Victoria Pay More

The regional gap comes almost entirely from dedicated transit levies.

In Metro Vancouver, the South Coast British Columbia Transportation Authority Act authorizes an 18.50¢ per litre tax on both gasoline and diesel.5British Columbia Laws. South Coast British Columbia Transportation Authority Act That money flows to TransLink for the bus network, SkyTrain, SeaBus, and related infrastructure. It’s the single largest reason a litre in Vancouver costs noticeably more than a litre in Kamloops or Prince George.

In the Victoria area, the Motor Fuel Tax Act authorizes a regional 5.50¢ per litre levy directed to BC Transit.1Government of British Columbia. Motor Fuel Tax and Carbon Tax Rates on Fuels and Substances Smaller than Vancouver’s, but enough to put Victoria roughly 5 to 6 cents per litre above the rest-of-province baseline.6BC Laws. British Columbia Code – Motor Fuel Tax Act

Total Provincial Tax Per Litre

Adding motor fuel tax and carbon tax together, before any federal charges, gives the provincial tax burden. For clear gasoline:

  • Vancouver: 44.61¢ per litre (27.00¢ motor fuel tax + 17.61¢ carbon tax)
  • Victoria: 37.61¢ per litre (20.00¢ + 17.61¢)
  • Rest of B.C.: 32.11¢ per litre (14.50¢ + 17.61¢)

For clear diesel the totals are higher because both components are higher:

  • Vancouver: 48.24¢ per litre
  • Victoria: 41.24¢ per litre
  • Rest of B.C.: 35.74¢ per litre

These figures come from the provincial rate schedule.1Government of British Columbia. Motor Fuel Tax and Carbon Tax Rates on Fuels and Substances Layer on the federal excise tax (10¢ gasoline or 4¢ diesel when not suspended) and the 5% GST on the whole total, and the all-in tax load in Vancouver on gasoline, outside the summer suspension window, easily exceeds 65 cents per litre. On a litre priced at $1.70 before tax in Vancouver, the GST alone adds roughly 11 cents.

Coloured Fuel for Farms, Logging, and Mining

Farmers, loggers, and mining operators can buy coloured fuel, dyed purple, at a much lower motor fuel tax rate. Coloured gasoline and coloured diesel each carry a motor fuel tax of just 3.00¢ per litre.1Government of British Columbia. Motor Fuel Tax and Carbon Tax Rates on Fuels and Substances Carbon tax still applies at the full rate, so coloured gasoline totals 20.61¢ per litre in provincial tax and coloured diesel totals 23.74¢.

Coloured fuel is restricted to authorized purposes: farm tractors and machinery, logging equipment, mining machinery, and engines used in those industries.7CanLII. Motor Fuel Tax Act – Motor Fuel Tax Regulation Putting coloured fuel in a passenger vehicle or other unauthorized equipment can bring significant penalties, and the dye makes misuse easy to detect at a roadside check.

Rates for Propane, Natural Gas, and Aviation Fuel

Not every fuel is taxed at the gasoline or diesel rate. Propane used as motor fuel carries a combined tax of 15.08¢ per litre (2.70¢ motor fuel tax plus 12.38¢ carbon tax). Aviation fuel sits at 21.59¢ per litre and jet fuel at 22.65¢. Natural gas used in a motor vehicle isn’t subject to motor fuel tax but carries a carbon tax of 15.25¢ per cubic metre.1Government of British Columbia. Motor Fuel Tax and Carbon Tax Rates on Fuels and Substances For fleets, the gap between propane or natural gas and the gasoline or diesel rate is wide enough to factor into vehicle purchasing decisions.

Fuel Tax Refund for Persons With Disabilities

British Columbia runs a fuel tax refund program for people with qualifying disabilities who rely on a personal vehicle. If you meet the medical eligibility criteria and register your vehicle with the province, you can claim a refund of up to $500 per calendar year on motor fuel tax paid.8Government of British Columbia. Fuel Tax Refund Program for Persons With Disabilities The program also includes a 25% discount on ICBC basic Autoplan insurance.

You apply through the provincial government and provide documentation of your qualifying condition. The refund covers motor fuel tax only. It doesn’t reimburse carbon tax, federal excise tax, or GST.

Visitors Cannot Claim a Fuel Tax Refund

If you’re visiting from the United States or another country, you can’t recover the GST or provincial taxes you paid on gas. Canada eliminated the general GST visitor rebate program years ago. The remaining Foreign Convention and Tour Incentive Program applies only to convention sponsors and non-resident exhibitors, not to individual tourists filling up.9Canada.ca. Foreign Convention and Tour Incentive Program The taxes you pay at the pump are final.