The Ontario on-road clear-diesel pump price decomposes into six layers, of which four are fixed statutory rates and two are market-determined.
| # | Layer | Rate | Authority | Effective | Type |
|---|---|---|---|---|---|
| 1 | WTI / wholesale crude reference | market | n/a | n/a | market — not statutory |
| 2 | Rack-to-pump margin (refining + marketing + transport) | market | n/a | n/a | market — not statutory |
| 3 | Federal excise tax on diesel | 0 ¢/L (suspension period); otherwise 4 ¢/L | Excise Tax Act; Department of Finance Canada backgrounder, April 14, 2026 | Suspension Apr 20 – Sep 7, 2026; reverts to 4 ¢/L thereafter | statutory |
| 4 | Federal carbon fuel charge on diesel (light fuel oil under GGPPA Schedule 2) | 0 ¢/L | Greenhouse Gas Pollution Pricing Act, Schedule 2, as amended by SOR/2025-107 (P.C. 2025-446, registered March 15, 2025) | April 1, 2025 (permanent for consumer charge) | statutory |
| 5 | Ontario fuel tax (diesel) | 9 ¢/L | Fuel Tax Act, R.S.O. 1990, c. F.35, as amended by legislation introduced in the 2025 Ontario Budget | Permanent from July 1, 2025 (previously temporary July 1, 2022 – June 30, 2025) | statutory |
| 6 | Harmonized Sales Tax (HST) — Ontario portion 8% + federal GST 5% = 13% | 13% | Excise Tax Act (GST/HST) | Long-standing | statutory (ad valorem) |
Layer 1 in the table above lists WTI for shorthand, but the Ontario diesel rack does not track WTI directly. It tracks NY Harbor ULSD futures (NYMEX HO) plus a Toronto basis, per Ontario Ministry of Energy methodology ("the wholesale price of gasoline and diesel in Ontario is strongly influenced by North American wholesale markets at certain locations - called benchmarks - such as the New York Harbor for Toronto prices and Edmonton for Thunder Bay prices"). WTI is upstream crude; NYH ULSD is the actual refined-product reference. See reference-rack-pricing-data-providers-canada for the full publisher list, posted-vs-net-rack-vs-DTW mechanics, and the Ontario Open Data daily CSV source.
Department of Finance Canada backgrounder, April 14, 2026 (https://canada.ca/en/department-finance/news/2026/04/temporarily-suspending-the-federal-fuel-excise-tax.html): "The federal excise tax currently applies at a rate of … 4 cents per litre on diesel fuel … As of April 20, 2026, federal excise tax rates … would be reduced to 0 cents per litre … until and including September 7, 2026. It is estimated this will provide over $2.4 billion in total tax relief." Confirmed in Natural Resources Canada "Fuel Consumption Levies in Canada" (last updated December 1, 2025).
Per Natural Resources Canada: "The federal GST/HST is charged on crude oil, refining and marketing costs and margins, the federal excise tax, applicable federal and provincial carbon levies, and provincial road taxes." HST is therefore applied to the grossed-up price including the other statutory layers; it is not applied to a subtotal that excludes them.
Pre-tax baseline ~95 ¢/L → + federal excise 0 ¢/L (in suspension) → + federal carbon 0 ¢/L → + Ontario fuel tax 9 ¢/L → subtotal ~104 ¢/L → × 1.13 HST = ~117.5 ¢/L pump price.
After September 7, 2026, federal excise of 4 ¢/L is restored, pushing the pump price up by approximately 4.5 ¢/L (4 ¢/L excise × 1.13 HST). This is the forward-dated number to carry as a footnote on the clear-diesel page; copy should not bake in 0¢ excise as permanent. See reg-federal-excise-suspension-2026 for the inventory and import treatment during the window (CRA ETSL82; CBSA 26-11).
SOR/2025-107, registered March 15, 2025, set the fuel-charge rates for all 21 listed fuels and combustible waste in Schedule 2 of the GGPPA to zero, effective April 1, 2025. Reporting/registration obligations cease after March 2025 for non-registered persons. CRA Notice FCN16 confirms removal of the fuel charge. The KB's existing entry reg-federal-carbon-charge-zero-2025 is correct.
2025 Ontario Budget, Chapter 1B (https://budget.ontario.ca/2025/chapter-1b-costs.html): "The government is introducing legislation to amend the Gasoline Tax Act and the Fuel Tax Act to permanently maintain the provincial tax rates on gasoline and fuel at 9 cents per litre. This change would take effect on July 1, 2025." Reconfirmed in the 2026 Ontario Budget (budget.ontario.ca/2026/chapter-1b-costs.html).
reference-rack-pricing-data-providers-canada)Confidence: verified (primary source confirmed 2026-05-13; updated 2026-05-16 with rack-reference clarification and forward step-up figure).
The Ontario on-road clear-diesel pump price decomposes into six layers, of which four are fixed statutory rates and two are market-determined.
| # | Layer | Rate | Authority | Effective | Type |
|---|---|---|---|---|---|
| 1 | WTI / wholesale crude reference | market | n/a | n/a | market — not statutory |
| 2 | Rack-to-pump margin (refining + marketing + transport) | market | n/a | n/a | market — not statutory |
| 3 | Federal excise tax on diesel | 0 ¢/L (suspension period); otherwise 4 ¢/L | Excise Tax Act; Department of Finance Canada backgrounder, April 14, 2026 | Suspension Apr 20 – Sep 7, 2026; reverts to 4 ¢/L thereafter | statutory |
| 4 | Federal carbon fuel charge on diesel (light fuel oil under GGPPA Schedule 2) | 0 ¢/L | Greenhouse Gas Pollution Pricing Act, Schedule 2, as amended by SOR/2025-107 (P.C. 2025-446, registered March 15, 2025) | April 1, 2025 (permanent for consumer charge) | statutory |
| 5 | Ontario fuel tax (diesel) | 9 ¢/L | Fuel Tax Act, R.S.O. 1990, c. F.35, as amended by legislation introduced in the 2025 Ontario Budget | Permanent from July 1, 2025 (previously temporary July 1, 2022 – June 30, 2025) | statutory |
| 6 | Harmonized Sales Tax (HST) — Ontario portion 8% + federal GST 5% = 13% | 13% | Excise Tax Act (GST/HST) | Long-standing | statutory (ad valorem) |
Department of Finance Canada backgrounder, April 14, 2026 (https://canada.ca/en/department-finance/news/2026/04/temporarily-suspending-the-federal-fuel-excise-tax.html): "The federal excise tax currently applies at a rate of … 4 cents per litre on diesel fuel … As of April 20, 2026, federal excise tax rates … would be reduced to 0 cents per litre … until and including September 7, 2026. It is estimated this will provide over $2.4 billion in total tax relief." Confirmed in Natural Resources Canada "Fuel Consumption Levies in Canada" (last updated December 1, 2025).
Per Natural Resources Canada: "The federal GST/HST is charged on crude oil, refining and marketing costs and margins, the federal excise tax, applicable federal and provincial carbon levies, and provincial road taxes." HST is therefore applied to the grossed-up price including the other statutory layers; it is not applied to a subtotal that excludes them.
Pre-tax baseline ~95 ¢/L → + federal excise 0 ¢/L (in suspension) → + federal carbon 0 ¢/L → + Ontario fuel tax 9 ¢/L → subtotal ~104 ¢/L → × 1.13 HST = ~117.5 ¢/L pump price. After September 7, 2026, federal excise of 4 ¢/L is restored, pushing the pump price up by approximately 4.5 ¢/L (4 ¢/L excise × 1.13 HST).
SOR/2025-107, registered March 15, 2025, set the fuel-charge rates for all 21 listed fuels and combustible waste in Schedule 2 of the GGPPA to zero, effective April 1, 2025. Reporting/registration obligations cease after March 2025 for non-registered persons. CRA Notice FCN16 confirms removal of the fuel charge. The KB's existing entry reg-federal-carbon-charge-zero-2025 is correct.
2025 Ontario Budget, Chapter 1B (https://budget.ontario.ca/2025/chapter-1b-costs.html): "The government is introducing legislation to amend the Gasoline Tax Act and the Fuel Tax Act to permanently maintain the provincial tax rates on gasoline and fuel at 9 cents per litre. This change would take effect on July 1, 2025." Reconfirmed in the 2026 Ontario Budget (budget.ontario.ca/2026/chapter-1b-costs.html).
Confidence: verified (primary source confirmed 2026-05-13).