Gasoline Competition Assistance Program
SK, Canada
Commission for gasoline and propane sold in Saskatchewan
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|noCondition
grant_single|deadlines
- grant_single|openingDateJuly 09, 2024
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- Wholesale trade
- Retail trade
grant_single|grantors
- Government of Saskatchewan
- Ministry of Finance (BC)
grant_single|status
grant_card_status|open
grant_single_labels|preview
Service station owners and bulk fuel dealers located along the Alberta and Manitoba borders can receive a commission of 25% to 100% of the tax differential to compete with their interprovincial counterparts.
grant_single_labels|projects
The Fuel Competition Assistance Program supports service stations and bulk fuel dealers located near the Alberta and Manitoba borders for taxable gasoline, diesel, dyed diesel, and propane. It provides tax relief based on the tax rate differential and proximity to competing fuel dealers in these provinces.
- Purchasing eligible fuels like gasoline, diesel, dyed diesel, and propane
- Delivering eligible fuels to customers within the competition assistance zones
- Sales of taxable propane for use in internal combustion engines
grant_single|admissibleProjectsExample
$15,000
Melville
Fuel supplier acquiring propane to meet demand and compete with Manitoba suppliers
$46,875
Swift Current
Cooperative buying diesel to support agricultural customers near Alberta border
$56,250
Lloydminster
Bulk fuel dealer seeking assistance to compete with dealers in Alberta and Manitoba
$63,750
Yorkton
Diesel supplier enhancing inventory to compete with regional markets
$52,500
Moosomin
Service station buying gasoline to maintain competitive pricing near Manitoba border
$33,750
Estevan
Service station upgrading fuel inventory to remain competitive near provincial borders
grant_single_labels|admissibility
Service stations and bulk fuel dealers located along the Alberta and Manitoba borders may be eligible for a competition assistance allowance for tax paid on their gasoline, diesel, dyed diesel and propane purchases.
- Service stations must be located up to 56 km from their nearest Alberta or Manitoba competition.
- Bulk fuel dealers who deliver eligible fuels to customers located in the competition assistance zones.
- The fuel types eligible for the assistance are gasoline, diesel, dyed diesel, and propane.
grant_eligibility_criteria|who_can_apply
Service stations and bulk fuel dealers located near the Alberta and Manitoba borders may be eligible for the Fuel Competition Assistance Program. They must meet certain criteria regarding their location and fuel types they sell or deliver.
- Service stations up to 56 km from the nearest Alberta or Manitoba competition
- Bulk fuel dealers delivering eligible fuels to customers within the competition assistance zones
grant_eligibility_criteria|eligible_expenses
Eligible expenses for this grant include purchases of gasoline, diesel, dyed diesel, and propane by service stations and bulk fuel dealers located within the competition assistance zones.
- Gasoline purchases
- Diesel purchases
- Dyed diesel purchases
- Propane purchases
grant_eligibility_criteria|zone
The eligible geographic zones for this grant are based on proximity to the Alberta and Manitoba borders and vary depending on competition distances.
- Zone A: Up to 24 km from AB or MB competition
- Zone B: 24 to 56 km from AB or MB competition
- Zone C: 24 to 56 km from MB competition
- Zone D: Up to 24 km from AB competition
- Zone E: Denare Beach
- Zone F: Flin Flon/Creighton
- Zone G: Surrounding areas
grant_single_labels|register
- Step 1: Obtain the Fuel Competition Assistance Application form.
- Step 2: Complete the Fuel Competition Assistance Application, ensuring all relevant details are accurately provided.
- Step 3: Collect fuel purchase invoices as supporting documentation.
- Step 4: For bulk fuel dealers, provide the names of their customers and the distance each customer is from their nearest Alberta or Manitoba fuel dealer.
- Step 5: Submit the completed application along with fuel purchase invoices and any additional required documentation to:
- Ministry of Finance
- Revenue Division
- PO Box 200
- Regina, SK S4P 2Z6
- Step 6: If applicable, bulk fuel dealers may contact their supplier to determine if they will provide credits instead of having to apply directly to Finance for assistance.
grant_single_labels|otherInfo
The Fuel Competition Assistance Program (FCAP) helps fuel dealers near Alberta and Manitoba borders by providing assistance for taxable fuel sales. The program adjusts based on tax rate differences and distance to nearest competition.
- Assistance does not apply to aviation fuel or exempt propane.
- Bulk fuel dealers must report customer distances and submit invoices for assistance claims.
- The effective assistance rates vary depending on the zone and type of fuel.
- Electronic tax reporting is available through the Saskatchewan eTax Services (SETS) portal.
- Service station dealers must provide business details and fuel purchase invoices for assistance.
- Propane assistance is only for taxable sales for internal combustion engines.
grant_single_labels|contact
SaskTaxInfo@gov.sk.ca
306-787-6645
Apply to this program
Fuel Competition Assistance Program
The Fuel Competition Assistance Program offers financial relief to service stations and bulk fuel dealers located near the Alberta and Manitoba borders by providing allowances for fuel taxes paid on eligible gasoline, diesel, dyed diesel, and propane purchases. The goal is to level the competitive playing field with fuel dealers in neighboring provinces where tax rates are lower.
Understanding the Fuel Competition Assistance Program: Eligibility, Application, and Benefits
The Fuel Competition Assistance Program (FCAP) has been designed by the Government of Saskatchewan to support service stations and bulk fuel dealers operating near the Alberta and Manitoba borders. These businesses often face stiff competition due to lower fuel taxes in the neighboring provinces. By providing a rebate on the fuel tax paid, the FCAP aims to ensure that Saskatchewan businesses remain competitive, thereby contributing to the regional economy.
Eligibility Criteria
Both service stations and bulk fuel dealers are eligible for the FCAP, provided they meet certain requirements:
- Service stations must be located within 56 kilometers of their nearest competitors in Alberta or Manitoba.
- Bulk fuel dealers can qualify if they deliver eligible fuels to customers situated within the competition assistance zones.
Eligible fuels under this program include gasoline, diesel, dyed diesel, and propane used in internal combustion engines. However, the assistance does not apply to aviation fuel or propane sold exempt from fuel tax for purposes such as heating.
How to Apply
Applying for the FCAP involves submitting the Fuel Competition Assistance Application, along with supporting documents like fuel purchase invoices. Bulk fuel dealers will also need to provide the names of their customers and specify the distance from each customer to the nearest fuel dealer in Alberta or Manitoba. Applications and associated documents can be sent to:
Ministry of Finance
Revenue Division
PO Box 200
Regina, SK S4P 2Z6
Email: SaskTaxInfo@gov.sk.ca
Assistance Calculation
The assistance level is determined based on the tax rate differential between Saskatchewan and the neighboring provinces and the shortest distance measured by a public road between the Saskatchewan fuel dealer and the nearest competitor in Alberta or Manitoba.
As of April 1, 2024, the fuel tax rates for Alberta will be increased to $0.13 per liter for gasoline and clear diesel, and $0.04 per liter for dyed diesel. The updated FCAP zones and assistance rates are detailed in the program guide. Here's a snapshot of assistance amounts based on zones and fuel types:
ZoneFuel TypeAssistance Amount ($/L)AGasoline0.02BGasoline0.01CGasoline0.005DGasoline0.15 Application Process
For service stations, the assistance is based on fuel purchases from suppliers and the zone in which the service station is located. Retailers must provide detailed information including their business name, address, fuel supplier details, and the distance to the nearest Alberta or Manitoba competitor.
Bulk fuel dealers calculate their assistance based on the deliveries made to customers within eligible zones. They also need to report new customers and provide details about the delivery locations. Applications should be accompanied by fuel purchase invoices and other necessary documentation.
Use of Saskatchewan eTax Services (SETS)
The Government of Saskatchewan has facilitated the tax reporting and remittance process through the secure online portal, Saskatchewan eTax Services (SETS). This platform offers several services, including:
- Secure registration for tax accounts
- Application for new tax accounts and permits
- Exempt or reduced fuel sales reporting
- Online filing and payment of returns
- Account balance and statement viewing
- Employee authorization for filing
- Email notifications for tax return due dates and new/updated tax publications
SETS streamlines the tax management process, making it convenient for businesses to stay compliant with tax regulations.
Benefits of the Program
By participating in the FCAP, Saskatchewan-based fuel dealers can significantly mitigate the competitive disadvantage posed by lower fuel taxes in Alberta and Manitoba. This program ensures that these businesses can offer competitively priced fuels without incurring losses due to tax differentials.
The FCAP not only supports local businesses but also bolsters the regional economy by maintaining competitive parity with neighboring provinces. This, in turn, encourages customer retention and can attract new business, thereby fostering economic growth.
Key Takeaways
The Fuel Competition Assistance Program is a well-thought-out initiative aimed at maintaining a healthy competitive environment for fuel dealers along the Saskatchewan-Alberta and Saskatchewan-Manitoba borders. By providing a rebate on fuel taxes, the program ensures that local businesses can compete fairly with their counterparts in neighboring provinces. This initiative highlights the government's commitment to supporting local businesses and maintaining economic balance in the region.
For further details, fuel dealers are encouraged to consult the program's information bulletin or contact the Ministry of Finance directly. Active participation and timely application submission can yield significant benefits, helping businesses thrive despite the competitive pressures from neighboring provinces.