Marked fuel proposal engagement

Overview

We gathered input from marked fuel sellers and consumers on a proposal to eliminate the use of marked fuel (fuel dyed red) and provide the partially exempt tax rate for agricultural and commercial producers on clear fuel (gasoline and diesel) instead.

Currently, marked fuel is used to distinguish the fuel that is eligible for the reduced tax rate. Under this proposal, the reduced tax rate would apply to clear fuels and new controls would be implemented to ensure the fuel is being used for eligible purposes.

Eligible consumers under this program included:

• agriculture producers with an active Alberta Farm Fuel Benefit (AFFB) program registration number
• individuals or business entities with an active Tax Exempt Fuel User (TEFU) exemption certificate

Get informed

• Alberta's Marked Fuel Engagement – Information video
• Marked fuel engagement presentation

Input received

Marked fuel sellers and eligible consumers were invited to provide feedback through an online survey between August 1 and August 31, 2025, on potential opportunities and challenges if the partially exempt tax rate was applied to clear fuel instead of marked fuel. This would result in marked fuel as no longer required in Alberta.

Input was reviewed by Alberta’s government. Of the more than 2,800 responses, 57% of survey respondents opposed the proposal to remove dye from fuel in Alberta. 

Outcomes

The majority of those who responded to the engagement are not in favour of changing the program. As a result, no changes will be made to the marked fuel program.

Contact

Connect with us if you have questions:
Email: [email protected]