Fuel blending

Fuel blending is the blending of fuel with any other substances (whether or not the other substances are fuel). It can include the blending of different quantities of like-fuel, for example diesel with diesel.

Fuel blending (other than those excluded below) to produce goods covered by paragraph 10(g) of the Schedule to the Excise Tariff Act 1921 (Excise Tariff Act) constitutes the manufacture of those goods for the purposes of the Excise Act 1901 (Excise Act).

The following are examples of fuel blending that are considered to be manufactured for excise purposes, and the resulting blends are excisable:

  • blending of fuel with like-fuel, such as blending diesel with diesel (whether they are imported or local) when one or both the blend components are underbond (not yet duty paid)
  • blending of a transport gaseous fuel, for example liquid petroleum gas (LPG), with a like non-transport gaseous fuel for transport use.

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    Last modified: 05 Jan 2016QC 19106