Effective November 9, 2023 the federal government has paused the Federal Fuel Charge (FFC) or Carbon Tax on furnace oil used for heating.
If you have any questions or are unsure whether or not you qualify for this exemption, please contact the Canada Revenue Agency directly at 1-886-330-3304.
The Federal Fuel Charge (or ‘FFC’, commonly called the Carbon Tax) is mandated under the Greenhouse Gas Pollution Pricing Act and goes into effect in Nova Scotia on July 1, 2023. You will notice this additional federal fuel charge on your invoices as “Federal Fuel”.
As a valued Discount Fuels customer, we wanted to advise you in advance that this will impact your fuel purchases from July 1, 2023, onwards.
The Federal Fuel Charge will vary by the petroleum product you purchase. The below rate will be effective on April 1st, 2024:
| Type of Fuel | Federal Fuel Charge |
| Light fuel oil (Furnace oil) | $0.2139 per litre |
Are you exempt?
Certain customers are exempt from paying the Federal Fuel Charge. The following table outlines who qualify for the exemption:
| Category of Customer | Federal Exemption Certificate |
| Farmer for gasoline, light fuel oil | L402 Fuel Charge Exemption Certificate for Farmers |
| Fisher for gasoline, light fuel oil | L403 Fuel Charge Exemption Certificate for Fishers |
| Registered distributor | L401 Fuel Charge Exemption Certificate for Registered Distributors |
If you are exempt, you must provide Discount Fuels with a copy of the exemption certificate in advance of any delivery occurring on or after July 1, 2023. Please include your Discount Fuels account number when submitting the certificate. Exemption Certificates need to be received and on customer files before we are able to sell fuel exempt from the FFC. Federal rules do not permit issuing refunds of the Federal Fuel Charge if a certificate is received after the delivery. If you qualify as an exempt customer, it is important that you provide the Exemption Certificate to us as soon as possible. The certificate can be sent to info@discountfuels.ca or 3451 Barrington Street, Halifax, NS, B3K 2X8.
Relief for Individuals
There is relief for the Federal Fuel Charge paid by individuals. The Climate Action Incentive Payment (CAIP) is a tax-free amount paid to help individuals and families offset the cost of the federal pollution pricing. It consists of a basic amount and a supplement for residents of small and rural communities. Residents of Nova Scotia will receive three quarterly payments (July 2023, October 2023, and January 2024) in the first year and four payments in the years after that. These quarterly tax-free payments will be made through a Government of Canada benefit system.
You are eligible for this rebate payment if you are a resident of Canada for income tax purposes in the month before and at the beginning of the month in which the CRA makes a payment. To be eligible, you must also be a resident of an eligible CAIP province on the first day of the payment month.
You do not need to apply to receive the payment for the CAIP. The Canada Revenue Agency (CRA) will determine your eligibility when you file your income tax and benefit return and will send you payments if you are entitled to them. The following table outlines the currently proposed payments:
| Category of Customer | Quarterly Payment Amount paid by the Government of Canada |
| First Adult | $124 per quarter |
| Second Adult | $62 per quarter |
| Each Child | $31 per quarter |
| Family of 4 | $248 per quarter |
More Information
For more information on the Climate Action Incentive Payment, please refer to the following website:
https://www.canada.ca/en/revenue-agency/services/child-family-benefits/cai-payment.html#toc1, or contact the Canada Revenue Agency.
For more information on the Federal Fuel charge, please refer to the following website: https://www.canada.ca/en/revenue-agency/services/tax/excise-taxes-duties-levies/fuel-charge.html, or contact the Canada Revenue Agency at 1-886-330-3304.
