Arkansas Fuel Taxes

Alternative Fuels Tax

Excise taxes on alternative fuels are imposed on a gasoline gallon equivalent basis. The tax rate for each type of alternative fuel is based on the number of motor vehicles licensed in the state that use each fuel type. (Reference Arkansas Code 26-62-201)

Natural Gas Metering

No user, including an alternative fuel supplier of natural gas fuels, who utilizes natural gas for residential or other tax-free purposes, is permitted to use natural gas fuel in motor vehicles unless the natural gas fuel is removed through a separate meter installed by the alternative fuels supplier for such purposes. (Reference Arkansas Code 26-62-203)

Liquefied Petroleum Gas (LPG) Tax

LPG used as a motor fuel is taxed on a per vehicle basis through an annual flat fee special fuel user's permit. The fee is based on the vehicle's Gross Vehicle Weight Rating. (Reference Arkansas Code 26-56-301 and 26-56-304)