Federal Oil Spill Fee – Tax Reinstated – What You Can Expect
In our efforts to best serve our valued customers, we strive to keep you up to date as much as possible with industry trends and changes. As of March 1st, 2018, the Federal Environmental Oil Spill fee, previously expired on December 31st of 2017 has been reinstated through a federal spending bill. Subsequent fuel purchases will include the following increase in fees in cents per gallon:
- Diesel – $0.002143
- B5 – $0.002036
- B20 – $0.001714
- Gas 100% – $0.002143
- Gas E10 – $0.001929
According to an online article in The Hill, oil companies will again be required to pay an oil spill cleanup tax on both domestic and imported crude and petroleum products as a result of a bill reinstated by Congress in early February. The $0.09 per barrel tax is part of an “extenders” tax bill package that previously generated $500 million in annual revenue for the U.S. according to the Congressional Research Service. Politicians voted against renewing the bill in December 0f 2017 but were met with heavy criticism. The Oil Spill Liability Trust Fund was promptly deemed essential as a way to mitigate potential spills, such as the 2010 BP Deepwater Horizon disaster. The Federal Oil Spill Fee is the main contributor to the Oil Spill Liability Trust Fund, which holds oil companies accountable for cleanups rather than passing along such costs to American taxpayers.
Contact an SCL Consultant Today
SCL’s tax department will update our internal tax tables as needed before the reinstatement goes into effect March 1st. If you have any questions or need additional information regarding this pending fee increase, please contact an SCL consultant today. In a wide range of industrial sectors, we’re here to protect and optimize the machines that keep our country moving, and we pride ourselves on providing superior logistics and solutions, extensive product and industry knowledge and total performance satisfaction for our customers. No matter where the future of the automotive industry is headed, we will be there to deliver what you need to keep you in motion.