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Motor Fuels Tax Rates

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  • Motor Fuels Tax Rates
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Summary of Motor Fuels Exemptions
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Tax Levy

Tax TypeTax RateCode Section
Gasoline$0.29 per gallon (effective October 1, 2023)40-17-325
Diesel Fuel$0.30 per gallon (effective October 1, 2023)40-17-325
Aviation Gasoline$0.095 per gallon40-17-325
Jet Fuel$0.035 per gallon40-17-325
Compressed Natural Gas$0.13 per GGE (effective October 1, 2023)40-17-168.2
Liquified Natural Gas$0.13 per DGE (effective October 1, 2023)40-17-168.2
Lubricating Oil
  • $0.02 per gallon
  • $0.04 per gallon
  • $0.06 total per gallon
40-17-171
40-17-220
Wholesale Oil License$0.0075 per gallon on all diesel fuel sold across a rack at a terminal in Alabama or upon import into Alabama for resale.40-17-174
Motor Carrier Mileage
  • With seating capacity not less than nine nor more than 16: $0.025 per mile
  • With seating capacity 17-21: $0.005 per mile
  • With seating capacity 22-25): $0.075 per mile
  • With seating capacity greater than 25: $0.01 per mile
40-19-3
Inspection Fee: Gasoline$0.02 per gallon for sales by a supplier to an exempt entity other than the federal government at the rack8-17-87
Inspection Fee: Undyed Diesel$0.02 per gallon for sales by a supplier to an exempt entity other than the federal government at the rack8-17-87
Inspection Fee: Dyed Diesel$0.02 per gallon (Reduced Rate $.00025 for vessels, railroad locomotives, tractors used for agricultural purposes & wood preservation)8-17-87
Inspection Fee: Dyed Kerosene$0.01 per gallon (Reduced Rate $.00025 for vessels, railroad locomotives, tractors used for agricultural purposes & wood preservation)8-17-87
Inspection Fee: Lubricating Oil$0.15 per gallon8-17-87