2024 Federal Motor Fuel Income Tax Rates and Credits


Superfund Tax: The Superfund tax was reinstated beginning 1/01/23 and is adjusted annually for inflation. The inflation adjusted rate for 2024 is $0.26 cents per barrel of crude beginning 01/01/2024. The tax is paid by refiners and crude oil importers. No party below the terminal rack is liable for the tax. Refiners and importers pass the tax down as a cost folded into the wholesale rack price of petroleum products and not as a tax. Marketers are not required to break this “tax” out on invoices or contract bids.

Rates below include the 1/10th cpg non-refundable LUST tax imposed on both dyed and clear liquid fuel. There is no refund of the LUST tax. Tax exempt parties are required to pay the .001 cpg.

Note: please reference the following PPA article to view 2024 Pennsylvania Oil Company Franchise Tax and Alternative Fuels Tax Rates

Product Rate Cents Per/Gal
Gasoline $.184 18.4 cpg
Gasoline (removed for alcohol blending) $.184 18.4 cpg
Alcohol (for use in downstream gasoline blending) $.184 18.4 cpg
Aviation Gasoline $.194 19.4 cpg
Biodiesel Blender’s Credit $1.00 100.0 cpg
Alternative Fuel Credit $0.50 50.0 cpg
Heating Oil $.001 1/10th cpg
Diesel (clear) $.244 24.4 cpg
Diesel (dyed) $.001 1/10th cpg
Diesel (dyed used in trains) * $.001 1/10th cpg
Diesel (removed for blending with biodiesel) $.244 24.4 cpg
Diesel (used in certain intercity and local buses) $0.17 17.0 cpg
Biodiesel (removed for blending with diesel) $.244 24.4 cpg
Kerosene (clear) $.244 24.4 cpg
Kerosene (dyed) $.001 1/10th cpg
Kerosene (clear – non-commercial aviation) ** $.219 21.9 cpg
Kerosene (clear – for use in non-taxable aviation) $.001 1/10th cpg
Kerosene (clear – for use in commercial aviation not foreign trade) $.044 4.4 cpg
Alternative Fuels – On Highway Use in a Motor Vehicle    
Propane (liquefied propane gas) (gasoline gallon equivalent) *** $.183 18.3 cpg
Compressed Natural Gas (CNG) (gasoline gallon equivalent) *** $.183 18.3 cpg
Liquefied Natural Gas (diesel fuel gallon equivalent) *** $.243 24.3 cpg
“P” Series Fuels $.184 18.4 cpg
Liquefied Fuel (derived from biomass) $.244 24.4 cpg

Notes

*This tax is paid by the railroads, NOT by the ultimate vendor.

** Marketers pay $.244 cpg at the rack, user’s rate is $.219. Ultimate vendor claim is 2.5 cpg. The ultimate vendor is the only party that can make the claim for 2.5 cpg. Ultimate vendor must have a certificate from the ultimate purchaser verifying the fuel is used for non-commercial aviation. Ultimate vendor must have an IRS 637 UA registration to file claim.

***For taxation purposes, one gasoline gallon equivalent (GGE) is equal to 5.75 pounds (lbs.) of propane and 5.66 lbs. of CNG. One diesel gallon equivalence (DGE) is equal to 6.06 lbs. of LNG. (Reference 26 U.S. Code 4041 and 4081).