Key Fuel Programs – Coloured Fuel Program

Gasoline and diesel fuel that is taxed at a lower rate is coloured (also referred to as dyed or marked) to distinguish it from higher-taxed fuels. Coloured fuel may be used only for the purposes authorized under the Motor Fuel Tax Act (see Authorized Uses, below).

The Coloured Fuel Program has two parts:

• Colouring (Dyeing) of Fuel
• Selling Coloured Fuel

All persons colouring fuel must be authorized. Authorized locations include refineries, terminals, bulk plants, truck mounted injectors, and some card/key locks. Please see Register to Colour Fuel and Bulletin MFT 003, Bulk Agents - Coloured Fuels, for more information.

Authorized colourers of fuel must file a monthly Dye Stock Report (FIN 476). Please see How to File for more information.

All sellers of coloured fuel must be authorized. This allows us to send specific information to businesses selling coloured fuel and helps improve compliance activities.

A list of authorized sellers of coloured fuel is available online, and includes new, active, suspended and cancelled sellers.

To apply for authorization to sell coloured fuel, please see Register to Sell Coloured Fuel.

Also, please review our publication, Summary of Responsibilities for Coloured Fuel Sellers, for information on your responsibilities as a seller of coloured fuel.

Businesses that purchase clear fuel and are authorized to colour or re-label it at a lower tax rate or exempt of tax (for example, to farmers, First Nations or for export) may apply for a refund for the difference in tax. Please see our Refunds section for more information.

Authorized Uses

Authorized uses of coloured fuel include:

	in a ship (e.g. yachts, boats)
	in an industrial machine (e.g. bulldozers, backhoes, front-end loaders) when not used on public roads or highways
	in a stationary engine or portable engine (e.g. generators or portable sawmills)
	in the following motor vehicles used for the logging or mining industry and when they are not used on a public road or highway: trucks used to haul logs, lumber or transport minerals crew crummies or buses used for the transportation of company employees, contractors or agents of the company, or employees of the contractors and agents in fire trucks and ambulances when used for that purpose
	in road-building machinery (for example, asphalt paving machines, self-propelled compressors), used within a highway project area, or used by or for the government for constructing or repairing government-maintained roads, including forestry and mining roads on Crown Land
	in a tractor when not used on a public road or highway
	in a tractor when used on a highway by or for a farmer for the purposes of their farm
	in a farm truck licensed as a farm vehicle under the Commercial Transport Act, and being used by a farmer or other person in the operation of the farm
	in a motor vehicle not licensed to operate on a highway, including unlicensed snowmobiles and all terrain vehicles (ATVs)

The Motor Fuel Tax Act and Regulations contain a complete list of authorized uses of coloured fuel. See Section 15.1 of the Act and 15.1 and 15.2 of the Regulations. This information is also provided in Bulletin MFT 003, Bulk Agents - Coloured Fuels.

Notes:

	Licensed motor vehicles, such as cars, trucks (except family farm trucks), vans or campers cannot use coloured fuel at any time.
	A highway is defined as any public road, street, lane or right of way (road allowances) in British Columbia. Off road areas such as logging, drilling or mine sites, and private roads maintained by industry such as designated logging roads, are considered off highway.
	A licensed motor vehicle is defined as a vehicle licensed for use on a public roadway according to conditions set out in the licence. Generally, licensing includes the attachment of correct number plates to the vehicle, the presence of a correct validation decal on a number plate, the Owner's Certificate of Insurance and Vehicle Licence, or a Temporary Operating Permit correctly displayed or carried in the vehicle. Motor vehicles without any of the above are considered unlicensed.
	Anyone who uses coloured fuel for an unauthorized purpose is committing an offence and may be subject to fines and/or penalties up to three times the clear fuel tax rate. In addition, an assessment for the difference between the coloured fuel tax rate and the tax that should have been paid will be applied.

To report unauthorized use or sales of coloured fuel, please contact the Ministry's anonymous TIPS Line at 1-877-977-0858.

For more information on the Coloured Fuel Program, including the authorized uses of coloured fuel, authorization to sell coloured fuel, or authorization to colour fuel, please contact us.