Oil companies and retailers faced tough questioning at the New Brunswick Energy and Utilities Board as they sought to reverse a government decision to remove refinery environmental charges from fuel prices next week. Board Chair Christopher Stewart challenged David Knight of the Convenience Industry Association of Canada on whether they were asking the energy tribunal to overturn a decision already made by the legislature.
The environmental charges, initially approved by the former Blaine Higgs government nearly three years ago, allow refiners and fuel importers to pass on the costs of federal environmental regulations to consumers. These charges currently amount to 7.9 cents per liter for gasoline and 8.8 cents for diesel, plus HST, at New Brunswick gas stations.
Premier Susan Holt contended that oil companies should bear their environmental costs, leading to legislation removing the charges from the regulated fuel pricing formula effective December 1. However, with no regulation on charges between oil companies, wholesalers, and retailers, concerns have been raised that oil companies may still bill retailers for the environmental costs.
Retailers fear closures in rural areas if they cannot recover the costs they will still face post-December 1. Peter Clark of Clark Oil emphasized the industry’s inability to sustain such a significant price change and appealed for support from the board.
Chris Scholten of the Scholten Group echoed these sentiments, warning of store closures, job losses, and increased travel for fuel. Board members acknowledged the challenges retailers may encounter but deliberated on the implications of implementing an alternative charge to replace the canceled one without undermining the legislature’s decision.
The board assured a prompt decision by the end of the day on Friday, acknowledging the urgency of the matter.