Breaking Down Gas Prices in Canada: What Taxes Are Included?

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.