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Business Tax Types: Motor Fuel

This information is designed to assist business people and people thinking about operating a business in Oklahoma. What follows is meant to be basic, introductory information and should not be considered the final word in business taxes in Oklahoma. For further information, please contact one of our Taxpayer Assistance Offices or attend one of our Business Tax Workshops.

Under the Motor Fuel Tax Code, the incidence of the motor fuel is specifically levied on the consumer of the fuel; however, the tax is pre-collected when it is removed from the terminal.  Gasoline and special fuel are taxed at 16 cents per gallon, diesel is taxed at 13 cents per gallon, and aviation and jet fuel are taxed at 0.0008 cents per gallon.  

Effective January 1, 2012, the motor fuel tax on Compressed Natural Gasoline (CNG) is collected upon the first sale by a wholesaler to a retailer or end-user.  Compressed Natural Gasoline (CNG) is taxed at 5 cents per gallon.

The motor fuel tax and reports for suppliers, bonded importers, exporters, terminal operators, occasional importers and CNG Wholesaler/Retailer/Consumers are due on the 27th day of the month following the month being reported.  The tankwagon importer tax and report are due on the 25th day of the month following the month being reported.  The special fuel tax monthly report is due on the 20th day of the month following the month being reported.

All special fuel decals are valid from January 1 through December 31.   The annual $50 fee is for liquefied petroleum gas or natural gas users in passenger cars and in vans and pickups under one ton.  For vehicles under one ton using alternative fuels (liquefied natural gas, methanol or "M-85") the fee is $100 per year.  For vehicles exceeding one ton, using liquefied petroleum gas, liquefied natural gas, methanol or "M-85" the fee is $150 per year.

Effective January 1, 2012, vehicles powered with Compressed Natural Gas (CNG) will no longer require a Flat Fee decal.


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Last Modified 12/21/2011


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