Blends no longer considered fuel

There are some blends, containing fuel components, that are no longer considered to be fuel and therefore they are not subject to excise duty. A clear example of a blend that contains a fuel component but would no longer be considered a fuel, is oil-based paint.

However, for other blends it may not be so clear. You can use the following information to help determine when a blend is no longer a fuel.

When a blend is not fuel

Under section 95–5 of the Fuel Tax Act, we may determine that certain blends of fuel are not a fuel for the purposes of the Fuel Tax Act.

We have determined that a blend is not fuel if the blend is not marketed or sold for use as fuel in an internal combustion engine, and the blend contains either:

• biodiesel classified to tariff sub-item 10.21 and a minimum concentration of either
  • 5% by volume of surfactant, or
  • 2% by volume of oleic acid
   
• a fuel classified to tariff sub-items 10.25, 10.26, 10.27, 10.28 and either
  • a product listed in Table 1 below at a concentration equal to or greater than the specified minimum, or
  • more than one product listed in Table 1 below and the total concentration of those products is equal to or exceeds 10% by volume.
   

Blends that satisfy the requirements of the determination are also not considered to be a fuel blend for excise purposes.

See also:

• EXC 2016/5 Fuel Tax (Fuel Blends) Determination 2016 (No 1)

Non-fuel components

Examples of how blends are dealt with

Find out about:

• Excise on fuel and petroleum products