The Saskatchewan Trucking Association (STA) is calling on the provincial government to remove the road tax on diesel fuel used in trailer refrigeration units, arguing that the charge is unjustified and adds unnecessary costs to essential goods like food and medication.
George Henderson, Director of Operations and Member Services at the STA, says the fuel powering these refrigeration units is taxed like regular diesel, despite the fact that the units do not use the road system.
“It isn’t right; it isn’t fair to have that road tax on there,” Henderson said in an interview Tuesday. “That added cost goes into the invoicing for customers, and ultimately, Saskatchewan families are paying more at the grocery store.”
Henderson said the impact goes beyond food. Many refrigerated trailers are also used to transport critical medications such as insulin and vaccines.
“We had a member that transported pretty much all vaccines during the pandemic,” he said. “This kind of tax adds cost to that as well.”
According to Statistics Canada data cited by the STA, grocery prices in Saskatchewan rose by approximately four percent between April 2024 and April 2025. The STA argues part of that increase is linked to transportation costs driven by the fuel tax.
The association says trucking companies would save up to $24,000 per refrigeration unit per year if they were allowed to use dyed diesel, which is taxed at a lower rate because it’s meant for off-road equipment. Other industries, such as agriculture, forestry, and construction, are permitted to use dyed diesel in non-road machinery.
“We’ve asked the Saskatchewan government to provide an exemption,” Henderson said. “We’ve used agriculture as an example; they don’t drive their combines and spray rigs on the road either. It’s the same logic.”
The STA says it has reached out to the province multiple times but has not received a direct response on the exemption request.
“They sent us a letter talking about how Saskatchewan is an affordable place to live, which we don’t disagree with,” Henderson said. “But food costs here are still expensive, and we haven’t heard back on the actual tax issue.”
If an exemption is granted, Henderson says the savings would be reinvested into the Saskatchewan economy.
“It could mean better equipment, improved wages; it won’t just go to profits,” he said.
As for whether the cost savings would actually be passed down to consumers, Henderson said that part depends on grocery stores and other retailers.
“That’s not something we can control,” he said. “We work with the carriers, not the retailers.”
The provincial government has since responded to the STA’s concerns, stating that the Marked Diesel Fuel Program is designed to support farmers and other primary producers, such as fishers, trappers, and commercial loggers, who typically do not use the provincial highway system.
A government spokesperson acknowledged that the STA estimated industry-wide savings of $1 million annually if truck refrigeration units were exempted, but said such savings would have a minimal effect on food inflation when spread across the sector.
The province did not confirm whether a policy change is under consideration but said it continues to review programs during the budget development process. It also pointed to the recent introduction of a $5,000 Class 1 Driving Training Rebate to support individuals pursuing their commercial truck driver’s licenses.
“Expanding the program to other users who do use the highway system does not align with the intent of the program,” the province said.
