Effective April 1, 2019, as part of the Greenhouse Gas Pollution Pricing Act, the federal government will introduce a fuel charge on all carbon-based fuels consumed in the Province of Ontario.
Fuel charge rates are set annually. On April 1, 2019 the fuel charge will begin at a price of $20.00 CDN per tonne CO2e, or 3.10 cents per litre of propane.
There is a proposed 80% exemption on the fuel charge when the propane is used for heating or generating carbon dioxide (CO2) at a commercial greenhouse operation, where plants are grown with a reasonable expectation of profit. For more information on the proposed exemption, please visit:
If your business is eligible for the exemption, the required form L404 is available at
If applicable, please complete the form and forward to us as soon as possible. Please note this partial exemption is still ‘proposed’ and has not yet been adopted into law. Until this partial exemption is formally implemented propane delivered to greenhouses will be charged at the current rate.
For further information on the program, please visit the Government of Canada website: https://laws-lois.justice.gc.ca/eng/acts/G-11.55/
If you require assistance to complete the exemption form please contact the Canada Revenue Agency helpline at 1-866-439-4202.
What is Greenhouse Gas Pollution Pricing?
In an effort to reduce greenhouse gas emissions by encouraging energy efficiency and cleaner energy options, the federal government has introduced the Greenhouse Gas Pollution Pricing Act. As part of the act effective April 1, 2019 there will be a fuel charge on essentially all carbon-based fuels consumed in the Province of Ontario, including propane.
What propane customers will be affected by this additional pricing?
Greenhouse Gas Pollution Pricing is applicable to all propane consumed in the province. There is a limited exemption for commercial greenhouse operations.
What is the rate of the fuel charge for propane?
|April 1, 2019||April 1, 2020||April 1, 2021||April 1, 2022|
|Bulk Propane||$0.0310 per litre||$0.0464 per litre||$0.0619 per litre||$0.0774 per litre|
|#20 cylinders||$0.5580 per cyl||$0.8352 per cyl||$1.1142 per cyl||$1.3932 per cyl|
|#33 cylinders||$0.9176 per cyl||$1.3735 per cyl||$1.8323 per cyl||$2.2911 per cyl|
|#100 cylinders||$2.7590 per cyl||$4.1296 per cyl||$5.5091 per cyl||$6.8886 per cyl|
How will the fuel charge appear on P38 ENERGY invoices?
For bulk propane deliveries the fuel charge will appear as a separate line item titled “Carbon Price”. For propane delivered in cylinders the fuel charge is incorporated into the cost per cylinder at the rates shown above and are not listed as a separate item.
What is the partial exemption available to commercial greenhouse operators?
There is a proposed 80% exemption on the fuel charge for propane used for heating or generating carbon dioxide (CO2) at a commercial greenhouse operation. Certain criteria must be met. Additional information is available at https://www.fin.gc.ca/n18/data/18-097_3-eng.asp Note: This partial exemption is still ‘proposed’ and has not yet been adopted into law. Until this partial exemption is formally implemented propane delivered to greenhouses will be charged at the current rate.
How do I apply for the commercial greenhouse exemption?
If your operation meets the required criteria please complete the L404 form available at https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/l404.html and submit to our office at firstname.lastname@example.org. Fuel charges apply until the signed exemption declaration is received.
Is there not an exemption for farming operations?
There are certain qualifying exemptions to the Greenhouse Gas Pollution Pricing available to farmers. However, propane is not listed as a qualifying farm fuel under the act and therefore no exceptions are applicable.
Is HST charged on the fuel charge?
Yes, HST is charged on the subtotal which includes the fuel charge.
Where do I find additional information on the program? For more information please visit the Government of Canada website: https://laws-lois.justice.gc.ca/eng/acts/G-11.55/
Still have questions? Please contact us at email@example.com