Alberta farmers, ranchers and fuel sellers have until Aug. 31 to provide input on a government proposal to eliminate marked fuel and provide tax exemptions on clear fuel instead.

The government is consulting stakeholders through an online survey on phasing out marked fuel under the Alberta Farm Fuel Benefit and Tax-Exempt Fuel User programs. While eligible consumers would still receive the partially exempt tax rate of nine cents per litre, they would use clear fuel instead of marked fuel for eligible purposes.

The proposal would eliminate the requirement to use marked fuel while maintaining the same eligibility criteria and exemption rates for farming operations and unlicensed off-road equipment used in agriculture, oil and gas, and forestry industries.

Under the proposed changes, fuel sellers would acquire clear fuel at the full tax rate and apply for refunds on the tax difference for fuel sold at the partially exempt rate to eligible consumers. This may impact fuel sellers’ cash flow and require system changes to sell clear fuel at different tax rates based on the end consumer.

“We’re committed to supporting Alberta’s agricultural and resource sectors with practical, cost-saving solutions,” said Nate Horner, president of the Treasury Board and minister of finance. “This proposal could reduce red tape and put more money back into producers’ pockets.”

For eligible consumers, the changes could mean increased likelihood of records being requested and reviewed to substantiate that fuel is used for eligible purposes. The government would also reintroduce AFFB and TEFU renewals every three years.

Agriculture Minister RJ Sigurdson said the government wants to ensure the farm fuel tax break continues in a way that makes sense for farmers and ranchers who “work tirelessly to put food on tables across Alberta and around the globe.”

Some fuel retailers may not be able to provide clear fuel at reduced rates due to system configurations, meaning eligible consumers might need to purchase fuel at full tax rate and complete claims for reimbursement.

The changes seek to reduce costs related to maintaining infrastructure to store dyed fuel or rebrand clear fuel to dyed fuel while continuing to encourage compliance. Currently, marked fuel is diesel or gasoline coloured with dye to distinguish it from clear fuel.

Eligible AFFB and TEFU consumers, and fuel sellers can complete the survey at alberta.ca/markedfuel-proposalengagement. A marked fuel information video and presentation slides are available online to explain the proposal’s intent and scope.

Recommendations based on stakeholder input will be provided to the government this fall for consideration.