About Propane

Propane is a very versatile fuel. Because of its versatility and easily transportable nature, propane is used in many applications throughout Canada and around the world. Propane is a non-toxic, colourless and odourless gas. Odourant is added at the supply source such that propane can be readily detected. Propane is stored and transported as a liquid and burned as a gas. Propane is a safe, clean and reliable energy form with abundant supply in Canada.


Propane Supply

Canada has a surplus of propane with about 70% of annual production being exported. Propane is produced from natural gas processing and oil refining. About 85% of Canada’s propane is produced from natural gas. Over the past five years, propane supply has averaged 11.9 billion litres, with domestic consumption averaging 3.3 billion litres, and exports to the United States averaging 8.6 billion litres. A well-developed and robust infrastructure of pipelines, rail and road transport ensures secure supply to consumers and businesses throughout Canada.


Propane Safety

Propane is a safe fuel and propane storage, handling and use are governed by stringent codes and regulations put into place by government and industry. The industry maintains a high level of safety with ongoing inspections, maintenance programs and employee training. Propane is odourless and a stench, similar to “rotten eggs”, is added such that the gas can be readily detected.


Propane & The Environment

Propane is more environmentally friendly than conventional fuels such as gasoline, diesel or fuel oil. In vehicles, propane green house gas (GHG) emissions are up to 26% less than gasoline emissions and propane emits significantly less criteria air contaminants and air toxics that negatively impact air quality and human health. Storage of propane, unlike other liquid fuels, has limited impact on water or soil as any releases dissipate to the atmosphere.

Propane when used in heating applications emits less GHG emissions than fuel oil and less particulate emissions that contribute to poor air quality. In space heating applications propane has 37% less GHG emissions than fuel oil and up to 64% less GHG emissions than electricity (United States data on a lifecycle basis–on site emissions plus upstream emissions).


Propane Uses & Applications



In addition to the backyard barbeque, propane has many uses around the home. Residential customers use propane for heating their homes and water as well as for clothes drying, cooking and pool heating. Increasingly, propane is being used in back-up generators to provide electrical power in the event of power disruptions. Propane as a gas is similar to natural gas and appliances designed for natural gas are easily adapted to utilize propane. Propane customers enjoy the same clean, modern and high efficiency appliances that urban customers use.


Propane is the fuel of choice in the manufacturing, warehousing and distribution sectors for powering forklifts. Propane is clean and offers more power and lifting capability than electric forklifts with no down time for charging.


Propane is used in the agricultural sector for crop drying and heating brooder barns. Greenhouse operations use propane as a source of heat for their temperature sensitive plants. Propane is also used to power wind generators and irrigation systems.


Customers use propane for heating their premises with radiant heaters and unit heaters. Commercial water heaters provide businesses with large quantities of hot water more quickly and efficiently than electricity. Propane is also used in restaurants for cooking and industrial processes for heat-treating of metals and alloys.


There are over 10 million vehicles worldwide using clean burning propane as a vehicle fuel. With today’s modern fuel injected technology propane provides cost savings in the order of 25% in relation to gasoline for high consumption fleet vehicles. In addition, propane offers environmental benefits with reduced GHG emissions and lower air toxics and criteria air contaminants than conventional fuels.


Uses of propane include mine air heating, aggregate drying and powering generators. Propane is also widely used in temporary heating applications during construction of residential, industrial and institutional facilities.

Carbon Pricing

Effective April 1, 2019, as part of the Greenhouse Gas Pollution Pricing Act, the federal government introduced a fuel charge on all carbon-based fuels consumed in the Province of Ontario.

Fuel charge rates are set annually. This year on April 1, 2022 the fuel charge will be at a price of $50.00 CDN per tonne CO2e, or 7.74 cents per litre of propane.

There is an 80% exemption on the fuel charge when the propane is used for heating or generating carbon dioxide (CO2) at a commercial greenhouse operation, where plants are grown with a reasonable expectation of profit. For more information on the exemption please visit


If your business is eligible for the exemption, the required form L404 is available at https://www.canada.ca/en/revenueagency/services/forms-publications/forms/l404.html. If applicable please complete the form and forward to us as soon as possible.

For further information on the program, please visit the Government of Canada website: https://laws-lois.justice.gc.ca/eng/acts/G-11.55/

If you require assistance to complete the exemption form please contact the Canada Revenue Agency helpline at 1-866-439-4202.

Still have questions? Please contact us at info@edproenergy.com

GGPPA – Frequently Asked Questions

What is Greenhouse Gas Pollution Pricing? 

In an effort to reduce greenhouse gas emissions by encouraging energy efficiency and cleaner energy options, the federal government has introduced the Greenhouse Gas Pollution Pricing Act. As part of the act effective April 1, 2019 there will be a fuel charge on essentially all carbon-based fuels consumed in the Province of Ontario, including propane.


What propane customers will be affected by this additional pricing?

Greenhouse Gas Pollution Pricing is applicable to all propane consumed in the province. There is a limited exemption for commercial greenhouse operations.


What is the rate of the fuel charge for propane? 


Bulk Propane

April 1, 2019 – $0.0310 per litre

April 1, 2020 – $0.0464 per litre

April 1, 2021 – $0.0619 per litre

April 1, 2022 – $0.0774 per litre


#20 Cylinders

April 1, 2019 – $0.5580 per cyl

April 1, 2020 – $0.8352 per cyl

April 1, 2021 – $1.1142 per cyl

April 1, 2022 – $1.3932 per cyl


#33 Cylinders

April 1, 2019 – $0.9176 per cyl

April 1, 2020 – $1.3735 per cyl

April 1, 2021 – $1.8323 per cyl

April 1, 2022 – $2.2911 per cyl


#100 Cylinders

April 1, 2019 – $2.7590 per cyl

April 1, 2020 – $4.1296 per cyl

April 1, 2021 – $5.5091 per cyl

April 1, 2022 – $6.8886 per cyl



How will the fuel charge appear on EDPRO invoices? 

For bulk propane deliveries the fuel charge will appear as a separate line item titled “Carbon Price”. For propane delivered in cylinders the fuel charge is incorporated into the cost per cylinder at the rates shown above and are not listed as a separate item.


What is the partial exemption available to commercial greenhouse operators? 

There is a proposed 80% exemption on the fuel charge for propane used for heating or generating carbon dioxide (CO2) at a commercial greenhouse operation. Certain criteria must be met. Additional information is available at http://www.fin.gc.ca/n18/data/18-097_3eng.asp Note: This partial exemption is still ‘proposed’ and has not yet been adopted into law. Until this partial exemption is formally implemented propane delivered to greenhouses will be charged at the current rate.


How do I apply for the commercial greenhouse exemption? 

If your operation meets the required criteria please complete the L404 form available at https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/l404.html and submit to our office at customerservice@edproenergy.com. Fuel charges apply until the signed exemption declaration is received.


Is there not an exemption for farming operations?

There are certain qualifying exemptions to the Greenhouse Gas Pollution Pricing available to farmers. However propane is not listed as a qualifying farm fuel under the act and therefore no exceptions are applicable.


Is HST charged on the fuel charge? 

Yes, HST is charged on the subtotal which includes the fuel charge.


Where do I find additional information on the program?

For more information please visit the Government of Canada website: https://lawslois.justice.gc.ca/eng/acts/G-11.55/