GAS PUMP - ANOTHER TAX COLLECTOR

 

In Nanaimo, British Columbia, as of May 2025, the total taxes included in the price of gasoline at the pump are approximately 28.5 cents per litre, excluding the 5% federal Goods and Services Tax (GST). Here's a detailed breakdown:

Gasoline Taxes in Nanaimo

• Provincial Motor Fuel Tax (General Revenue): 7.75¢/L

• British Columbia Transportation Financing Authority (BCTFA) Tax: 6.75¢/L

• Federal Excise Tax: 10¢/L

• Transit Tax: 4.0¢/L(Wikipedia, natural-resources.canada.ca)

Total (excluding GST): 28.5¢/L

These taxes are applied uniformly across British Columbia, with the exception of additional regional transit taxes in areas like Greater Vancouver and Greater Victoria.

Transit Tax in Nanaimo

Nanaimo falls under the jurisdiction of BC Transit, which is funded through a combination of provincial contributions and local government funding. While specific per-litre transit taxes are not itemized separately for Nanaimo, the general provincial motor fuel tax contributes to transportation infrastructure and services, including public transit.

On a typical $30 fill the tax charge per litre would be 28.5

Additional Tax: GST

On top of the above taxes, a 5% federal GST is applied to the total price, including the fuel cost and all other taxes. This tax is collected on the total pump price and not per litre. For example if your total purchase was $30.00 in addition to the per litre tax collected you would pay another $1.50 in GST.

An example of what the GST tax really means on a per litre basis let's consider. Assuming a pump price of $1.70 and a total sale of $30 you would have bought 17.6 litres of fuel. The tax on $30 would be $1.50 charged on 17.6 litres of fuel or another 8.5 cents per litre. This would increase the tax per litre to 28.8 + 8.5 = 37.3 ¢/L

Carbon Tax Update

As of April 1, 2025, the British Columbia carbon tax has been eliminated, reducing the overall tax burden on gasoline by approximately 17.61¢ per litre. (gaspricesbc.ca)

Note as of May 18,, the pump price in Nanaimo is and the pump price in Calgary is. Of note is the fact that the Calgary price has only changed a few cents in the past month, whereas Nanaimo has jumped by leaps and bounds. If this were based purely on oil price, etc., you would expect the Nanaimo price to move in tune with Calgary, but that is not the case. The setting of prices in BC and particularly on the Island and even more particularly in Nanaimo has always been a mystery that seems void of any real logic.