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Petroleum Products Delivery Fee
What is the Petroleum Products Delivery Fee?
A petroleum product (Water Code, Sec. 26.342 (11)) 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Texas assesses a delivery fee on all petroleum products when they are withdrawn from a bulk facility (a terminal or a refinery) and delivered into a cargo tank or barge, or imported into the state in a cargo tank or barge for delivery to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Suppliers collect the delivery fee from a company that purchases petroleum products when the products are withdrawn into cargo tanks, and importers remit the fee directly to the Comptroller's office when petroleum products are imported into Texas.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.
| 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.
| 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.
On split loads, the PPD fee is based on the total of gasoline and diesel fuel and not a separate fee on each product. If there is less than 7,000 gallons of gasoline in the split load, the fee is based on the total net temperature gallons of all products withdrawn. If there are 7,000 gallons or more of gasoline in a split load, the fee is based on the presumption that the withdrawal is into a cargo tank with a capacity of at least 8,000 gallons but less than 10,000 gallons. See Rule 3.151(d) Imposition, Collection, and Bonds or Other Security of the Fee for more information.
| Example 1 | Example 2 | Example 3 | Example 4 | Example 5 | |
|---|---|---|---|---|---|
| Gasoline Gallons | 5,000 | 7,000 | 8,100 | 7,050 | 7,500 |
| Diesel Fuel Gallons | 2,500 | 700 | 300 | 0 | 3,000 |
| Total Gallons | 7,500 | 7,700 | 8,400 | 7,050 | 10,500 |
| Delivery Fee Due | $5.45 | $6.95 | $6.95 | $6.95 | $10.40 |
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:
$500,000 or more
Select one of these reporting methods:
TEXNET is the only acceptable payment method.