Should Alberta Eliminate Red-Dyed Fuel for Farm and Commercial Tax Exemptions?
Official title: Marked fuel proposal engagement
Alberta asked farmers and commercial fuel users whether to stop using red-dyed fuel for tax exemptions. Right now, dyed fuel signals you're eligible for a lower tax rate. The proposal would have applied the discount to regular clear fuel instead, with new verification controls. After 2,800 responses—57% opposed—the government decided to keep things as they are.
Why This Matters
If you're a farmer or run a business that uses tax-exempt fuel, this could have changed how you buy and track your fuel. The current system with dyed fuel stays in place, so no changes to your routine.
What Could Change
Nothing will change. The government reviewed the feedback and decided to keep the marked fuel program as is. Red-dyed fuel will continue to be used for the reduced tax rate for eligible agricultural and commercial users.
Key Issues
- Should the reduced fuel tax rate apply to clear fuel instead of marked (red-dyed) fuel?
- What opportunities and challenges would arise from eliminating marked fuel?
How to Participate
- This consultation is now closed. The online survey ran from August 1 to August 31, 2025. Review the engagement presentation to understand what was proposed.
What Happened
Over 2,800 responses were received. 57% of survey respondents opposed the proposal to remove dye from fuel in Alberta. As a result, the government decided to make no changes to the marked fuel program.