Frequently Asked Questions About Coloured Fuel
Can I use coloured fuel in a licensed motor vehicle?
No. Coloured fuel may not be used to fuel a licensed motor vehicle, even if the motor vehicle is operated primarily in connection with the business of farming, construction, forestry, or mining.
Please refer to Ontario Tax Bulletin FT 1-2001 for further information.
What is it?
Coloured fuel is diesel or similar fuel that contains a specific type and quantity of red dye. The dye is supplied by the Minister of Revenue and added to fuel by registered dyers in accordance with the Fuel Tax Act and regulations.
Coloured fuel is exempt from Ontario fuel tax and may be used for non-taxable purposes such as home heating or in unlicensed construction or farm equipment. Coloured fuel may be also used to power auxiliary equipment such as reefer units from a segregated fuel tank.
Please refer to Ontario Tax Bulletin FT 1-2001 for further information.
