Saskatchewan’s fuel tax is 15 cents per litre on gasoline and diesel, with lower rates on propane and aviation fuel and a handful of exemptions and refunds for qualifying users. The tax is set under The Fuel Tax and Road Use Charge Act and is built into the pump price by distributors before you fill up.1Saskatchewan eTax Services. Fuel Tax
Current Per-Litre Rates
- Gasoline and diesel: 15 cents per litre
- Propane: 9 cents per litre
- Aviation gas and jet fuel: 1.5 cents per litre
Distributors collect the tax and pass it through in the retail price, so you pay it as part of what shows on the pump.1Saskatchewan eTax Services. Fuel Tax
The Federal Carbon Charge No Longer Adds to This
Saskatchewan pumps used to carry a federal fuel charge under the Greenhouse Gas Pollution Pricing Act on top of the provincial tax. Effective April 1, 2025, the federal government set all fuel charge rates to zero, so that consumer-facing levy no longer applies in Saskatchewan.2Canada Gazette. Schedule 2 to the Greenhouse Gas Pollution Pricing Act The 15-cent provincial tax is the only per-litre tax at the pump in 2026.
Marked Diesel: The Reduced Rate for Farmers and Primary Producers
Saskatchewan allows a reduced rate of 3 cents per litre on marked diesel, the dyed fuel often called “purple fuel,” instead of the standard 15 cents.3Government of Saskatchewan. The Fuel Tax and Road Use Charge Act – Fuel Tax – General Information Three groups can buy it:
- Farmers, for their own farming operations in unlicensed farm machinery and Class F vehicles. If the equipment is used for anything other than the farmer’s own operation, clear diesel must be used.
- Custom farm operators, under a Restricted Use (Temporary) Fuel Tax Exemption Permit, for work like cultivating, seeding, spraying, harvesting, hauling farm animals, and mobile seed cleaning.
- Primary producers of renewable resources, meaning commercial loggers, fishers, and trappers, for use in unlicensed equipment during eligible production.
All three need a valid Fuel Tax Exemption Permit, and retailers must record the buyer’s name and permit number on each invoice. At the pump, marked diesel can only be dispensed into Class F vehicles. It’s not allowed in LV, D, C, or A vehicles, and putting dyed fuel in a non-qualifying vehicle is one of the fastest ways to draw enforcement attention from the Ministry of Finance.3Government of Saskatchewan. The Fuel Tax and Road Use Charge Act – Fuel Tax – General Information
Heating Fuel Is Fully Exempt, With Limits
Diesel sold as heating fuel or fuel oil is exempt from fuel tax if it’s marked and identified as heating fuel at the time of sale. A bulk dealer delivering directly into a tank used only for heating storage can sell to you without a permit; picking up heating fuel yourself from a bulk dealer or cardlock does require a Fuel Tax Exemption Permit.3Government of Saskatchewan. The Fuel Tax and Road Use Charge Act – Fuel Tax – General Information
“Heating” here means fuel burned in a device with a burner that produces an open flame. It does not cover fuel used to power an engine or turbine, propel a vehicle, regulate temperature in transport trailers or shipping containers, generate electricity, run compressors or pumps, or perform fabrication work such as cutting or welding. Those uses are taxed at the full 15 cents per litre.
First Nations Purchases
Status Indians who present a valid Certificate of Indian Status card can buy fuel tax-free at on-reserve retailers. The tax is already in the price the retailer paid, so the retailer claims the refund from the province.4Government of Saskatchewan. First Nations Fuel and Tobacco Tax Refund First Nations bands can also claim a refund on fuel the band buys directly and has delivered onto the reserve for band use.
The tax-free benefit only covers fuel for the buyer’s own use or authorized band purposes. Resale or distribution of tax-free fuel is not allowed.5Government of Saskatchewan. Fuel and Tobacco Tax Refund Program – First Nations and On-Reserve Retailers
Refunds When You’ve Paid Tax on Non-Motive Use
If you buy fully taxed fuel at the pump but burn it for something that qualifies for an exemption or reduced rate, you can apply to the Ministry of Finance for a refund of the difference. Typical situations include stationary engines, mining and forestry equipment that never leaves the site, and construction machinery.6Government of Saskatchewan. Fuel Tax Refunds and Rebates
The paperwork matters. You’ll need original invoices showing the tax paid, usage logs that separate motive from non-motive consumption, and records detailed enough to hold up under audit. If a piece of equipment does both road and off-road work, metering the non-motive use strengthens the claim. Vague estimates are where most refund applications run into trouble.
Fuel Consumed Out of Province
Sellers who export fuel from Saskatchewan can either apply for an exporter’s licence and buy without paying tax upfront, or pay the tax and claim a refund later. Only sellers qualify. Consumers who buy fuel in Saskatchewan and burn it in another province cannot claim a refund or credit, which catches some drivers off guard.3Government of Saskatchewan. The Fuel Tax and Road Use Charge Act – Fuel Tax – General Information For commercial carriers crossing borders, the IFTA system handles that reconciliation.
Electric Vehicle Road Use Charge
Because EVs don’t buy taxed fuel, Saskatchewan charges their owners an annual road use fee instead. Effective June 1, 2025, the annual charge for Class LV electric vehicles registered in the province is $300, up from $150.7Government of Saskatchewan. Road Use Charge on Electric Vehicles SGI collects the charge when you register or renew, prorates it for shorter registration periods, and refunds unused portions. The $300 amount applies through at least December 31, 2026.
IFTA for Cross-Border Truckers
If your vehicles operate across provincial or state borders, you report through the International Fuel Tax Agreement instead of filing separately in each jurisdiction. One quarterly return details your kilometres and fuel purchases in each member jurisdiction, and overpayments in one place get credited against amounts owed in another.8Saskatchewan Ministry of Finance. International Fuel Tax Agreement Carrier Manual Carriers need an IFTA licence, must display decals on qualifying vehicles, and have to keep supporting records for at least four years from the return due date or filing date, whichever is later.
Penalties escalate fast. The minimum for a late return is $50 or 10 percent of your total tax liability, whichever is greater. Underpaying triggers a separate 10 percent penalty. Interest accrues at the Canadian Treasury rate plus 2 percent, per month or partial month. If you stop filing altogether, your IFTA licence is revoked and every member jurisdiction and law enforcement agency is notified. The province can then estimate your liability from your past filings or from similar carriers, assess you for that amount plus interest and penalties, and require a fuel tax bond before relicensing.8Saskatchewan Ministry of Finance. International Fuel Tax Agreement Carrier Manual
Penalties Under the Act
Outside the IFTA framework, The Fuel Tax and Road Use Charge Act carries its own consequences. An individual convicted of an offence faces a fine of up to $10,000. A corporation faces up to $50,000. Interest applies to any unpaid tax. Ministry of Finance audits look for discrepancies in reported fuel volumes, improper use of marked fuel, and failures to collect or remit tax, and any of those can trigger enforcement.