What is taxable for fuel producers or refiners in the oil and gas industry?
If you are a producer or manufacturer of fuel in British Columbia, such as a business in the oil and gas industry, and you use your own fuel or import fuel for your use in the course of your operations, you are required to self-assess and pay carbon tax on that fuel. Examples of taxable uses of fuel by the oil and gas industry include: • fuel used to run compressors and pumps, or to generate heat, • fuel used for the operation of equipment or machinery during manufacturing, refining, processing or transportation of oil and gas, and • fuel that is flared or incinerated. Examples of non taxable uses of fuel, when fuel is not combusted, by the oil and gas industry include: • fuel used as a raw material in an industrial process to produce or upgrade another fuel, • fuel used in pipeline pigging, • fuel used in down-hole operations at a well site, • fuel used to remove natural gas liquids or impurities in the processing of natural gas, • fuel used as an anti-freeze in a pipeline (effective
