taxes

Petroleum Products Delivery Fee

What is the Petroleum Products Delivery Fee?

A petroleum product is defined as a product obtained from distilling and processing crude oil and capable of being used as a fuel to drive a motor vehicle or propel an aircraft, including motor gasoline, gasohol, other alcohol blended fuels, aviation gasoline, kerosene, distillate fuel oil, and #1 and #2 diesel. The term does not include naphtha-type jet fuel, kerosene-type jet fuel, or a petroleum product destined for use in chemical manufacturing or feedstock of that manufacturing.

Texas assesses a delivery fee on all petroleum products when they are withdrawn from a bulk facility (a terminal or a refinery) and delivered into a cargo tank or barge, or imported into the state in a cargo tank or barge for delivery to another location for distribution or sale.

Who is responsible for this fee?

Suppliers collect the delivery fee from a company that purchases petroleum products when the products are withdrawn into cargo tanks, and importers remit the fee directly to the Comptroller's office when petroleum products are imported into Texas. The Texas Commission on Environmental Quality (TCEQ) determines petroleum products delivery fees; contact TCEQ with any questions at 512-239-0369.

Petroleum Products Delivery Fees Effective Sept. 1, 2015
Gallons Delivered (All Petroleum Products) Fee (per delivery)
Less than 2,500 $1.70
2,500 but less than 5,000 $3.45
5,000 but less than 8,000* $5.45
8,000 but less than 10,000* $6.95
10,000 or more per 5,000 gallon increment $3.45/5K gal

*For gasoline deliveries of at least 7,000 but less than 8,000 gallons (whether single product type or split load), special rules continue to apply:

  • If the gasoline portion of the delivery is less than 7,000 gallons, the fee is $5.45 per delivery.
  • If the gasoline portion of the delivery is at least 7,000 gallons, the fee is $6.95 per delivery.
Petroleum Products Delivery Fees Effective from July 1, 2012, to Aug. 31, 2015
Gallons Delivered (All Petroleum Products) Fee
Less than 2,500 $2.75
2,500 but less than 5,000 $5.50
5,000 but less than 8,000* $8.65
8,000 but less than 10,000* $11.00
10,000 or more $5.50/5k gal

*For gasoline deliveries of at least 7,000 but less than 8,000 gallons (whether single product type or split load), special rules apply:

  • If the gasoline portion of the delivery is less than 7,000 gallons, the fee is $8.65 per delivery.
  • If the gasoline portion of the delivery is at least 7,000 gallons, the fee is $11.00 per delivery.

Due Date

Monthly: 25th day of the month following the end of each month (for example, on April 25 for March activity).

Penalties and Interest

Penalties
  • If the fee is paid 1-30 days after the due date, a 5 percent penalty is assessed.
  • If the fee is paid over 30 days after the due date, a 10 percent penalty is assessed.
Interest
  • Past due fees are charged interest beginning 61 days after the due date.
  • To calculate interest on past due fees, visit Interest Owed and Earned.

Reporting and Payment Requirements

Select the amount of taxes you paid in the preceding state fiscal year (Sept. 1 – Aug. 31) to find the reporting and payment methods to use.

Less than $500,000

Select one of these reporting methods:

Select one of these payment methods:

  • Web Electronic Funds Transfer (EFT) or credit card via Webfile (American Express, Discover, Mastercard and Visa)
  • TEXNET
  • Check
$500,000 or more

Select one of these reporting methods:

TEXNET is the only acceptable payment method.

Additional Resources