Fuel tax credits - fuel blends

Fuel tax credits and common fuel blends

The rates table, Fuel tax credit rates and eligible fuels provides rates for the common fuel blends that have been invoiced as B5, B10, E10 or E85. If your fuel blend is not invoiced as B5, B10, E10 or E85, see Fuel tax credits and other blends.

Common diesel blends

For blends of biodiesel and diesel that are invoiced as B5 or B20, the effective fuel tax is calculated as if the fuel is entirely diesel.

If the carbon charge applies to your business activity, then the fuel tax credit amount for the diesel portion of the blend (B20 is 80%) is reduced by the carbon charge for diesel. The fuel tax credit amount for the biodiesel portion of the blend is not reduced by the carbon charge.

Common petrol blends

For blends of ethanol and petrol that are invoiced as E10 the effective fuel tax is calculated as if the fuel is entirely petrol.

If the carbon charge applies to your business activity, then the fuel tax credit amount for the petrol portion of the blend (E10 is 90%) is reduced by the carbon charge for petrol. The fuel tax credit amount for the ethanol portion of the blend is not reduced by the carbon charge.

E85 - a blend of ethanol and petrol that generally contains more than 70% but no more than 85% ethanol - is also considered a common blend. However, the effective fuel tax on this blend is not calculated as if the fuel is entirely petrol - it is calculated on the petrol portion only, which is 15% of the blend.

If the carbon charge applies to your business activity, then the fuel tax credit amount is reduced by the carbon charge for the petrol portion.

To find out the fuel tax credit rates for common fuel blends such as B5, B20, E10 and E85, refer to Fuel tax credit rates and eligible fuels. The rates include the carbon charge where applicable.