US suppliers prepare to implement Superfund tax on oil

From 1 January, a Superfund Excise tax of $0.164/bbl will be levied on all crude and petroleum products sales in the US.

PHOTO: Oil refinery complex with big American flag displayed, and fumes coming out from the chimney. Getty Images

US President Joe Biden signed the Inflation Reduction Act (IRA) 2022 on 16 August. The IRA reimposes a Superfund Exercise tax on crude and petroleum product of $0.164/bbl from 1 January onwards.

A standard charge of $0.0039/gallon will be charged for all gasoline and distillate-based product sales including LSMGO from 1 January, a US-based bunker supplier said in a notification. It says the Superfund tax will work similarly to USA Oil Spill Liability Trust Funds.

Gasoline products blended with 10% ethanol will be levied a $0.00351/gallon charge.

Bunker prices in some US ports are typically quoted on a delivered or ex-wharf basis, excluding excise taxes. Most suppliers have proactively informed bunker buyers about the Superfund Excise tax that will be levied for all oil products, including bunkers, sold from 1 January.

By Nithin Chandran

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