Ontario levies a direct tax on every purchaser of clear middle distillate fuel used in internal combustion engines. This tax is collected by retailers from their customers and is remitted through their suppliers.

Untaxed middle distillate fuel is coloured (red) for non-taxable uses. (e.g. heating, cooking or generating power in unlicensed equipment used for commercial, industrial or institutional purposes.)  Clear fuel may be sold exempt from tax to fuel acquisition permit holders, members of the diplomatic corps, and for use in the vehicles and aircraft of visiting armed forces. The use of coloured fuel in a licensed motor vehicle or in unlicensed recreation equipment is prohibited.

Operators of qualified commercial motor vehicles travelling into or out of Ontario are required to obtain and display on their motor vehicle IFTA registration decals issued by the operator’s base state or province.  In lieu of the above registration requirement, Ontario single trip permits may be purchased and carried in the motor vehicle.