Gas prices in Canada often leave drivers wondering how much of what they pay at the pump actually goes toward taxes. It’s no secret that taxes form a significant portion of gasoline prices, but understanding the different layers of taxation can provide insight into where your money is going.
Here's a comprehensive look at the taxes included in the price of gas across Canada.
Vancouver area: 81 cents per litre
Victoria area: 74 cents per litre
Rest of BC: 61 cents per litre
1. Federal Excise Tax
Rate: 10¢ per litre.
This is a flat tax applied by the federal government on all gasoline sold in Canada.
2. BC Carbon Tax
Rate: 17.61¢ per litre (matches the federal carbon tax).
This tax is part of BC’s carbon pricing policy aimed at reducing greenhouse gas emissions.
3. Provincial Motor Fuel Tax
Rate: 14.5¢ per litre (for most of BC).
In Metro Vancouver, this rate is higher because it includes an additional TransLink tax.
4. TransLink Tax (Metro Vancouver Only)
Rate: 18.5¢ per litre.
This additional tax funds public transportation in the Metro Vancouver area. Outside Metro Vancouver, the rate is 5.5¢ per litre for regional transportation.
5. Goods and Services Tax (GST)
Rate: 5% on the total price of gasoline (including the taxes listed above).
For a 64-litre fill-up, the tax amounts to approximately:
$52 in Vancouver
$47.50 in Victoria
$43.60 in the rest of BC
These high fuel taxes significantly impact affordability for BC residents, with some calling for tax relief to ease the burden on drivers.
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