The federal Oil Spill Liability tax levied on refiners will increase from 8 cents per barrel of crude oil to 9 cents per barrel beginning January 1, 2017. The tax is imposed on crude oil when it is received at a United States refinery. The operator of the refinery is the only party liable for the tax. The increase was mandated by Congress in the Energy Improvement and Extension Act of 2008. The Oil Spill Liability tax was enacted under the Bush Administration in 1991 in response to the Exxon Valdez 1989 oil spill in Alaska. Proceeds from the tax are used for oil spill clean-up and compensation costs.

It is important to know that the Oil Spill Liability tax is paid only by refiners. Refiners pass the tax downstream as a cost included in the price of finished product. Some refiners break out the tax on terminal bill of ladings while others do not. The tax is not refundable downstream to any party. Once the tax goes over the terminal rack it becomes a cost added to the price of fuel. It is important for downstream marketers to treat the Oil Spill Liability tax as a cost and not a "tax" to avoid confusion over whether it should be included on bids or invoices to tax exempt customers. The tax should always be folded in as a cost of the fuel and not itemized as a tax on downstream bill of ladings. There is no requirement that the Oil Spill Liability Tax be itemized on a bid or invoice below the terminal rack because it is no longer a tax once it is paid by refiners. 

The following chart shows the price per gallon cost increase on finished product of the current 8 cent per barrel rate (2016) and the 9 cent per barrel rate effective January 1, 2017.