Natural Gas and Hydrogen Tax

Compressed natural gas (CNG) and hydrogen are taxed at a rate of $0.165 per gasoline gallon equivalent (GGE). Liquefied natural gas (LNG) is taxed at a rate of $0.165 per diesel gallon equivalent (DGE). One GGE is equal to 5.660 pounds (lbs.) of CNG or 2.198 lbs. of hydrogen. One DGE is equal to 6.06 lbs. of LNG. Beginning January 1, 2020, the tax rate for natural gas and hydrogen will be annually adjusted by the State Tax Commission (Commission) not to exceed $0.225 per GGE or DGE. The Commission will publish the adjusted fuel tax no later than 60 days prior to the effective date. (Reference Senate Bill 72, 2019, and Utah Code 59-13-102 and 59-13-301)