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Reminder: ?Federal Oil Spill Liability Tax Returning, Effective Jan. 1, 2020

Reminder: ?Federal Oil Spill Liability Tax Returning, Effective Jan. 1, 2020

Reminder: Federal Oil Spill Liability Tax Returning

The Federal Oil Spill Liability Tax (FOSLT) is coming back after a one-year hiatus. The fee, which expired on Dec. 31, 2018 has been reauthorized, although it is not coming back on a retroactive basis. It will simply reappear as a charge beginning Jan. 1, 2020.

The fee may appear as a line item on some invoices, but other companies will simply build it into the rack price. Refiners are responsible for the fee which is 9cts per barrel of crude.

Since the fee only applies to crude, and crude-sourced hydrocarbons, it amounts to different charges on various products. For diesel fuel, it works out to 0.2143cts/gal; for a 5% biodiesel blend, it amounts to 0.2036cts/gal; and for B20, it runs 0.1714cts/gal. On a typical 10% ethanol blend of finished motor fuel, the fee will be 0.1929cts/gal, and for and E0 (all hydrocarbon gasoline), the charge is 0.1929cts/gal.
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