Gasoline and diesel price reductions of up to 10 cents per liter set to go into effect in New Brunswick on Monday have been called off by the province’s Energy and Utilities Board. The board’s decision, issued on Friday, highlighted concerns that the government’s plan to remove refinery environmental charges from fuel prices could harm petroleum wholesalers and retailers.
The charges being canceled, referred to as a “carbon cost adjuster,” currently allow refineries and fuel importers to transfer the expenses of complying with stricter federal environmental regulations to consumers. Following the ruling, the board mandated the introduction of a new fuel charge equivalent to the one being eliminated. Both charges will swap places simultaneously at one minute past midnight on December 1.
Board chair Christopher Stewart expressed in an oral statement that the removal of the carbon cost adjuster would negatively impact wholesalers and retailers. New Brunswick Premier Susan Holt, in an email to CBC News, reaffirmed her commitment to advocating for a pricing system based on actual costs to alleviate financial burdens on families struggling with fuel expenses.
Holt criticized the decision by the Energy and Utilities Board, emphasizing that consumers should not bear costs that lack industry evidence to support them. She had been advocating for the elimination of the carbon cost adjuster since 2023 and promised during the 2024 provincial election campaign to exclude it from the province’s regulated pricing formula for gasoline and diesel.
The board’s intervention came after Holt announced the removal of the charges, anticipating savings of $84 million annually for consumers starting December 1. However, concerns arose as the legislation did not address how refinery environmental costs would be managed, potentially burdening retailers with substantial expenses. The board indicated that a full review of the current charges would be conducted, although it could take more than 90 days to complete.
Unless the board issues a new directive, the replacement fuel charge will remain effective until the comprehensive examination is finalized.