Ontario levies a direct tax on every purchaser of gasoline. This tax is collected by service stations and other retailers, from their customers, and is remitted through their suppliers.

Gasoline tax is collected on gasoline, aviation fuel and propane. Essentially, the tax applies to all fuel which may be used to generate power by means of internal combustion.

Methanol and natural gas are excluded, and therefore are not subject to tax even when used to generate power in a licensed motor vehicle. Diesel fuel is also excepted as it is taxed separately under the Fuel Tax Act (see Fuel Tax).

When gasoline is used by business, industry, institutions, farmers and commercial fishermen in equipment not required to be licensed under the Highway Traffic Act, a tax refund may be claimed. Claims must be received by the Ministry within 4 years of date tax was paid.