The Federal Carbon Tax and MEI – What you Need to Know

On April 1, 2019 the Federal Government will implement a carbon tax on fuel in the provinces of Saskatchewan, Manitoba, Ontario and New Brunswick. This Federal Tax will be shown as a separate line item on your invoices and delivery tickets.


Putting a price on carbon pollution is considered to be an efficient way to reduce GHG emissions. Pricing pollution is intended to drive innovative solutions to provide low-carbon choices for consumers and businesses.

Read more about the Government’s pollution pricing strategy and details on the Fuel Charge.

How much is it?

The fuel charge rates reflect a carbon pollution price of $20 per tonne of carbon dioxide equivalent in 2019, rising by $10 per tonne annually to $50 per tonne in 2022.

In 2019 this amounts to 4.42 cents per litre (cpl) on gasoline, 3.1 cpl on propane and 5.37 cpl on diesel and home heating fuel.

Visit the Department of Finance Canada for a listing of all the fuel charge rates.

How is the cost calculated?

The rates are based on global warming potential factors and emission factors used by Environment and Climate Change Canada to report Canada’s emissions to the United Nations Framework Convention on Climate change. Applying the fuel charge at higher rates over time will help to reduce greenhouse gas emissions and support clean growth, while keeping costs low for Canadians and Canadian businesses.

The rates for gasoline and light fuel oil also take into account the average renewable content of these fuels.

Am I eligible for exemption?

Some businesses are eligible for an exemption certificate.  Click here for details on who is eligible and how to register.

Who do I contact at McDougall to provide my exemption number?

Please contact our credit department at or 705-949-2588

Do I need to register my business?

Some companies may be required or permitted to register with the CRA under the Greenhouse Gas Pollution Pricing Act. Click here for more information on who needs to apply and how to do so.