From: David Amos <david.raymond.amos333@gmail.com>
Date: Wed, May 14, 2025 at 12:11 PM
Subject: 8.8-cent surcharge on N.B. gas not going away yet
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8.8-cent surcharge on N.B. gas not going away yet
Liberal government undecided on repealing carbon adjustor after committee avoids taking position
New Brunswickers appear destined to keep paying a provincial surcharge on gasoline for a while longer, despite a seven-month-old Liberal election promise to quickly eliminate it.
The cost-of-carbon adjustor is adding 8.8 cents to a litre of regular gasoline this week.
The Holt government committed to repealing the adjustor during last fall's provincial election campaign, but they hit the brakes after gas distributors and retailers warned it could put some of them out of business.
A committee of MLAs that held a day of hearings into the repeal legislation in February issued a report last week that didn't take a position on whether the adjustor should stay in place or be removed.
Instead, it tells the government to talk to the Energy Utilities Board about whether the current adjustor formula reflects the true cost of federal climate regulations.
Progressive Conservative Opposition Leader Glen Savoie said this virtually guarantees that the repeal bill won't pass before the legislature adjourns for the summer on June 6.
Minister wants to know impact of eliminating adjustor
Energy Minister René Legacy said the committee report was "smart and well-thought-out" and his office would contact the EUB this week to discuss the issue.
"We just want to make sure that before we make any changes, we know the impacts."
The Higgs PC government introduced the adjustor legislation in 2022 so that the cost of federal Clean Fuel Regulations could be passed from producers through New Brunswick's regulated gas pricing system to consumers.
Critics denounced it as a way to protect Irving Oil from the regulations.
The cost per litre is set by the EUB every week. It is 8.8 cents per litre this week.
Legacy called that "quite high."
"There's something to be looked at," he said. "I think it came out in the committee that there is something to be fixed there."
The Holt Liberals promised in the 2024 election to repeal the surcharge "immediately," but after they introduced a bill to do that last fall, gas distributors and retailers fought back.
They told MLAs on the law amendments committee in February that without a law in place forcing the EUB to pass the cost to consumers, it would hit their bottom line instead.
Legacy said upcoming EUB hearings on what profit margins gas wholesales and retailers are allowed to make could also affect the decision.
He said the adjustor may have been helping retailers stay afloat at a time when the limits on their profit margins haven't kept up with costs.
The minister wouldn't say whether the bill will advance and be adopted this spring.
"I'm not sure if it will go as-is, or if it will go with an amendment," he said.
Opposition leader worried about retailers
Savoie said the government should abandon the repeal or risk seeing some gas retailers go out of business.
"Anything that causes gas operators to close in rural New Brunswick is a bad thing," he said.
"This government has obviously broken many of its promises. … I would hope that they do break this one, because this one, if they keep it, will cause gas stations in rural New Brunswick to close."
When the bill was being debated last fall, Premier Susan Holt said another option would be to eliminate the provincial regulation of gas prices altogether.
Holt said Tuesday that possibility was "still a live conversation."
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John Herron says nixing price-setting rules would bring 4.6¢-per-litre carbon cost 'closer to the zero number'
CBC News · Posted: Nov 28, 2024
Holt Liberals under pressure over election gas-price promise
Fuel distributors, retailers warn committee they may shut down if ‘carbon adjustor’ is repealed
Premier Susan Holt's government finds itself in a dilemma after gasoline distributors and retailers warned that a key Liberal affordability promise could drive them out of business.
Business owners warned a committee of New Brunswick MLAs that a bill to repeal the so-called "cost of carbon adjustor" would force those costs onto their books, putting their viability at risk.
"We are held hostage because of this situation," Peter Clark, the owner of Woodstock-based Clark Oil, told the legislature's law amendments committee.
"We are an essential service. There'd be no food on the table, there'd be no construction, there'd be no nothing without us delivering. We are not big oil. You're not getting at big oil here."
Nadine
Hébert, the vice-president of Shoreline Fuels, says repealing the
adjustor could stop her company's deliveries immediately. (Jacques Poitras/CBC)
Nadine Hébert, the vice-president of Shoreline Fuels, said repealing the adjustor could lead her company to park its delivery trucks immediately.
Chris Scholten, the president of Scholten's Convenience Stores, said forcing retailers to absorb the carbon cost — set at 7.1 cents per litre of gas this week — would lead to them losing money on every fill-up.
"Under this Bill 4, it's suggesting that we should be absorbing a loss for the sale. [It's] a privilege to sell gasoline, apparently," Scholten said.
Holt government in dilemma over promise to repeal ‘cost of carbon’ charge"How do we continue to cover ever-increasing costs when we're being held back on any ability to recoup said costs? Where does it end?"
But committee member Jacques LeBlanc, the Liberal MLA for Shediac-Cap-Acadie, pointed out that the government is hearing from New Brunswickers struggling to cope with higher costs.
"People are being pinched everywhere," he said.
In
last year’s election, now-Premier Susan Holt said forcing distributors
and retailers to pass on the cost to consumers amounted to a tax, and
she promised to repeal it. (Jacques Poitras/CBC)
"You understand that we also hear it from that side also. This is important to understand. People need to be heard but also, we need to take action to make sure people are getting a better dollar value for what they pay for."
The clause, adopted by Blaine Higgs's Progressive Conservative government in 2022, requires the Energy and Utilities Board to pass on the cost of federal clean fuel regulations from producers to consumers via the weekly price setting for gasoline.
Committee
member Jacques LeBlanc, the Liberal MLA for Shediac-Cap-Acadie, pointed
out that the government is hearing from New Brunswickers struggling to
cope with higher costs. (Ed Hunter/CBC)
The regulations are intended to create financial incentives for producers to produce fuel with lower greenhouse gas emissions.
But in last year's election Holt said forcing distributors and retailers to pass on the cost to consumers amounted to a tax that she promised to repeal.
The Liberals introduced a bill to do that last fall, but after lobbying by the Convenience Industry Council of Canada and other organizations, they halted debate and sent the bill to the committee for hearings.
Bill Hogan, a PC MLA, said Tuesday that it was a mistake for Holt to commit to repealing the clause without considering the impact on small businesses.
"Perhaps they had not fully considered all the ramifications to removing the carbon adjustor," he said.
"I think it sounded good to call it the 'Higgs tax.' … I think it sounded good to say, 'Let's take 4.3 cents a litre off the price of gas.'"
PC
MLA Bill Hogan says it was a mistake for Holt to commit to repealing
the clause without considering the impact on small businesses. (Ed Hunter/CBC)
LeBlanc told reporters that it was too early to say what the committee would recommend after the day of hearings.
"Our intention is to move this bill forward, and there's a process," he said, including a debate in the legislature that could include "possibly some amendments"
"We were elected on a promise that people needed for more affordability measures, so we're looking at all points of view," he said. "We'll take all that into consideration."
Moe Qureshi of the Conservation Council of New Brunswick said it's impossible to know whether the carbon adjustor amount truly reflects the cost of the federal regulations to producers.
Moe
Qureshi of the Conservation Council of New Brunswick says it’s
impossible to know whether the carbon adjustor amount truly reflects the
cost of the federal regulations to producers. (Ed Hunter/CBC)
He said the Energy and Utilities Board should have the power to investigate the real cost and pass that on directly to producers.
"A lot of these costs should be paid by the polluter," he told MLAs.
"It's not the consumers' responsibility to clean up the fuel. It's industry's responsibility to clean up the fuel."
The adjustor should be repealed and replaced with a more stringent carbon tax on industry, he said.
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Thursday, 28 November 2024
'No true benefit' to regulating gas prices, Liberal minister says
'No true benefit' to regulating gas prices, Liberal minister says
John Herron says nixing price-setting rules would bring 4.6¢-per-litre carbon cost 'closer to the zero number'
The Holt government's natural resources minister has come out strongly in favour of completely eliminating gasoline price-setting rules — while defending his own role in establishing the formula for the controversial carbon-cost adjustor Liberals plan to eliminate.
John Herron has no official responsibility for gasoline regulations, but Premier Susan Holt said he's playing a key role in discussions thanks to his former job as a member of the Energy and Utilities Board.
At the EUB, Herron was part of the panel that decided how to calculate the carbon adjustor, which adds 4.6 cents to the price of a litre of gasoline this week.
It's a cost that Holt promised to eliminate as part of a package of campaign commitments to make life more affordable for New Brunswickers.
But it looks increasingly likely that the Liberals will get rid of the EUB price-setting system altogether.
"There is no true benefit in my perspective of having a regulated regime in New Brunswick but there is a cost," Herron told CBC News in an interview.
"We don't benefit from the opportunity for the market to compete down profit margins and compete down costs."
Eliminating the price-setting mechanism completely would allow gas producers and distributors to reintroduce the carbon cost back into the supply chain and pass it down to customers.
"It's a cost of doing business in Canada, and that cost has to be included in the price," said Carol Montreuil, the vice-president for Eastern Canada with the Canadian Fuels Association, an industry group.
"One way or another, in all provinces in the country, that cost — coming from the federal policy on clean fuel standards — is being applied across the country. New Brunswick is no different."
Carol
Montreuil, the vice-president for Eastern Canada with the Canadian
Fuels Association, says the carbon cost is simply part of doing business
in Canada. (Jacques Poitras/Zoom)
Holt argued last week that eliminating price regulation will create more competition among gas retailers, potentially driving prices down. Herron said he agrees with that position.
"If we were in a non-regulated market, not only do you have a chance to compete down margins, you're actually able to compete down costs, including that of the adjustor," Herron said during Question Period on Wednesday.
But Montreuil said there's no way competition will push prices down far enough to completely eliminate the carbon cost.
"No, not that full amount, because that number is real. It exists elsewhere in the country," he said.
The Higgs government created the carbon cost adjustor in 2022 to allow gasoline refiners and distributors to pass on their costs from federal clean fuel regulations, designed to push gasoline producers to lower the greenhouse gas emissions from their products.
It was left to the EUB to figure out how to calculate the cost, and a consultant hired by the board came up with a formula using the California Low Carbon Fuel Standard as what it called "a reasonable proxy," at least temporarily.
Glen Savoie, leader of the Progressive Conservative Opposition, suggested Wednesday that Herron was flip-flopping, given the Holt government plans to repeal the mechanism he helped craft as a board member.
Opposition
leader Glen Savoie said Herron was flip-flopping, since he once helped
craft the price-setting mechanism with the EUB. (Jacques Poitras/CBC News)
"How did he get from agreeing with the EUB's direction to agreeing with the government's direction?"
Herron said the board was required to implement whatever legislation was adopted at the time.
But he also suggested the formula has led to a higher price than warranted.
"At that time, the EUB had made it very clear that they were working with the best available evidence it had before it," he said.
"We knew it was not the most optimal evidence that was put before the board at that time."
The minister told reporters that given no refiners, wholesales or distributors have asked for a higher carbon cost adjustor since it took effect, it's more likely that it's too high than too low.
He predicted that if price regulation is eliminated and the carbon cost is put back onto the price, "I think it's more apt to be closer to the zero number than 4.6."
Herron said he trusts the free market — which determines prices outside the four Atlantic provinces that all have regulatory price-setting — to "ensure the actual number reflects what that number should be."
But Savoie told reporters that with no publicly available price-setting formula, no one will be able to say for sure.
"Deregulating is not necessarily going to lower prices for people, and it's going to be difficult to track where the cost-of-fuel adjustor actually gets paid," he said.
ABOUT THE AUTHOR
This guys is a liberal right?
bank profits,
Grocery store profits,
oil and gasoline profits,
rental corporate profits,
Pharmaceuticals profits...
there is little use for natural gas regulations.
It's Levis, in the place that cor doesn't like ;-)
Monday, 25 November 2024
Holt says province could scrap price-setting law on gas
Holt says province could scrap price-setting law on gas
N.B. premier says removing maximum price regulations could spur competition, drive down prices
Premier Susan Holt has raised the possibility of eliminating the regulation of retail gas prices in New Brunswick as a way to drive down the cost to consumers.
Holt brought up the idea while responding to criticism from Opposition Leader Glen Savoie that the elimination of the so-called "carbon cost adjustor" — saving consumers four cents a litre on gas — might have unintended consequences.
In 2022, the adjustor became part of the price-setting formula used by the Energy and Utilities Board to set the maximum price of gas every week.
It requires the board to let gasoline producers pass on the cost of federal clean fuel standards to consumers via the board's mechanism. That cost is 4.6 cents per litre this week.
Holt said last Thursday the EUB may have other ways to force consumers to keep paying that cost and suggested it may be better to scrap the provincial price-setting system altogether.
"It's certainly a possibility. We want to look at whether it's serving New Brunswickers," Holt said.
"And I think right now the first-glance data we have doesn't suggest that it's keeping the prices any lower, [or is] any more beneficial to New Brunswickers than jurisdictions that have an unregulated fuel price, because competition drives that."
Holt said most gas retailers tend to set their prices at or near the weekly maximum set by the board, and eliminating the regulation would create a more competitive marketplace.
"Removing the regulation means that retailers start to compete for our business, and that may see a drive to a lower price than we see today," she said.
But there's no guarantee that would happen, and Holt acknowledged scrapping price regulation altogether would "potentially" let producers resume passing the cost of the federal fuel standards on to consumers through the supply chain.
However, she said the more likely outcome would be free-market pressures driving retailers to lower their prices.
Holt's predecessor, Progressive Conservative Blaine Higgs, said in May his government was reviewing whether to scrap the price-setting law, called the Petroleum Products Pricing Act.
At the time, Holt responded that the discussion should not happen "behind closed doors" and should involve the public.
"They should be able to see what's being said, what's being suggested, and they should be able to weigh in on alternatives or options," she said in June.
Premier
Susan Holt has raised the possibility of eliminating the regulation of
retail gas prices in New Brunswick as a way to drive down the cost to
consumers. (Jacques Poitras/CBC)
Holt's government introduced legislation last week to repeal the carbon adjustor, which was adopted by Higgs in 2022.
Savoie said in his official response to the Liberal speech from the throne that without the adjustor in place, producers will still pass the cost down the supply chain – but now it will hit small, locally-owned gas stations, endangering already thin profit margins.
"The retailers will not be able to deal with the pressure that's going to be caused by the changes the government is going to put into place. They're not going to be able to adapt," Savoie said, predicting some gas stations would close.
"It is going to cause some of those retailers to take that infrastructure out and say 'my business can no longer handle the loss.'"
Energy Minister René Legacy said last Wednesday the repeal of the adjustor will take effect as soon as the bill is passed, likely before Christmas, which should see the 4.5 cents per litre come off the price by the end of the year.
But Holt said the next day that the EUB has other mechanisms that could continue to pass the cost to consumers, and her government would need to see if it can stop that from happening.
"There's lots we can consider," she said. "We don't have all information we'd like from the EUB."
Opposition
Leader Glen Savoie said in his official response to the Liberal speech
from the throne that without the adjustor in place, producers will still
pass the cost down the supply chain. But now it will hit small,
locally-owned gas stations, endangering already thin profit margins. (Ed Hunter/CBC)
Asked if the government should have sorted that out before introducing the bill, the premier said that it was "sending [the issue] back to the EUB, and we don't know how they're going to act on it. It shouldn't, and it's not our hope that it works its way back to consumers."
She agreed with Savoie that it "absolutely" is a concern that some gas retailers could close with the adjustor gone.
"That's why there's work to be done with the EUB and with others, to see how they're going to react to this and what choices they'll make."
The Petroleum Products Pricing Act was adopted in 2006 and while it doesn't lead to cheaper gas, it smooths out dramatic fluctuations in the price at the pumps that can happen during swings in the commodities market.
The EUB uses a formula, based on a benchmark market price, to set the maximum price once a week, taking effect every Thursday at midnight.
Green Party Leader David Coon said Holt's bill repealing the carbon adjustor should have included language to ensure the EUB did not pass the clean-fuel costs to retailers and left them with producers.
"The EUB law can be amended by this legislature to give them the power to do that. This is the legislature. They're the government," Coon said.
ABOUT THE AUTHOR
David Amos
Reply to David Amos
Well put.
David Amos
Reply to Don Corey
Welcome back to the circus
Content Deactivated
"Seems Ms. Holt agrees with the carbon tax, freezing bank accounts, and all of those new liberal/prog..."
Bob Leeson
Reply to Frank Blacklock
No one who obeys the law has their bank account frozen in Canada.
Ralph Skavinsky
Reply to Frank Blacklock
?? Sorry but what has that got to do with the subject at hand
Don Corey
Reply to Bob Leeson
That is a false statement.
David Amos
Reply to Don Corey
Yup
Ronald Miller
The riding of Quispamsis is quickly realizing their mistake now.
Ronald Miller
Reply to Ronald Miller
Bobby, have you taken his poster down yet?
Ronald Miller
Reply to Ronald Miller
If a moderator is paying attention the account I am replying to is a mimic of mine and based on your Submission Guidelines should be removed.
Graham McCormack
Reply to Ronald Miller
I would say they are quite happy right now but you keep being you.
Don Corey
Reply to Ronald Miller
Why? Higgs was swinging way to far to the right. I'm a PC but have had enough of him; would have voted independent if I had been voting in that riding.
David Amos
Reply to Don Corey
I resemble that remark
Gas is going way way up anyways. Who cares what she does. This is not anything new. Gas will be over 3 dollars a litre soon enough and we all knew it.
Graham McCormack
Reply to Shawn Tabor
You base that on what exactly?
Scott A.
Reply to Graham McCormack
it is approaching $2/liter now and it did not take too long to get there ...
more Taxes on Fuel in April ...
as overzealous Greens, like Trudeau, get their way, less Oil production, not much less demand ... it is not Rocket Appliances ...
Akimbo Alogo
Reply to Shawn Tabor
"Who cares what she does" - the taxpayers care. Perhaps you should try being one.
Graham McCormack
Reply to Scott A.
Where do you live? Gas is not approaching $2.00 a liter.
Don Corey
Reply to Shawn Tabor
Gas is actually about the same price as a year ago, and that includes Trudeau's carbon tax increase. It should go down 4 cents/litre when Holt removes the Irving clean fuel adjustor clause that Higgs gave us.
David Amos
Reply to Akimbo Alogo
He pays lots of taxes
Scott A.
the Government is going to remove Carbon Taxes ... I doubt it ...
in Fact the Liberal Government is going to increase taxes again in April ...
I hope the Liberals never ever get in again, loathe them and their supporters ...
Eddy Geek
Reply to Scott A.
No argument, however, what plan does wee Pierre have to deal with, well anything?
It is all just more "coke vs pepsi" between the libs and the cons; No matter which is in office, they all end up the same flavour
Ronald Miller
Reply to Eddy Geek
Fortunately for Canadians, there will only be one JT, and his legacy will be that of the worst PM in Canadian history, and the next worse is not even close.
Eddy Geek
Reply to Ronald Miller
JT is terrible, no argument, but to suggest he's worst than Harper of Mulroney is laughable
Course, you still things Higgs was the best thing to happen, yet he couldn't even hold onto his own riding
Don Corey
Reply to Ronald Miller
True.
Don Corey
Reply to Scott A.
The good news is that the carbon tax will be history soon after the next federal election. Then we'll see both a big reduction at the gas pumps and a subsequent lowering of the Canada inflation rate.
David Amos
Reply to Eddy Geek
I concur
Why not demand her bosses in Ottawa scrap the carbon taxes?
Denis Reagan
Reply to Frank Blacklock
Because, unlike Mr. Axe the Facts, she is aware of the need to do something about global warming.
ralph jacobs
Reply to Frank Blacklock
That would make a big saving but I bet the price at the pumps would stay the same because we can be gouged.
Ronald Miller
Reply to Denis Reagan
If you think punishing Canadians will have any impact on global anything you are out to lunch on the subject.
Denis Reagan
Reply to Ronald Miller
Canadians are nothing more than Trumpians. We're much brighter than that and understand the global problem PP.
Ronald Miller
Reply to Denis Reagan
Your parents must be proud
Don Corey
Reply to Denis Reagan
And you actually believe the consumer carbon tax (which very few countries have) will magically reduce emissions and global warming?
Don Corey
Reply to Denis Reagan
Our federal government understands very little about "global problems", and obviously even less about the many problems and crises we have right here in Canada.
David Amos
Reply to Don Corey
Oh So True
"N.B. premier says removing maximum price regulations could spur competition, drive down prices"
LOL... and people said Higgs worked for Irving.
Tom
Reply to Jack Bell
They all work for Irving.
David Amos
Reply to Tom
Yup
John Pokiok
Gas
stations can already sell gas for less than EUB rate is set only thing
they can't do is sell it for more. I don't think abolishing these rules
would be helpful. Most likely gas will get more expensive if you give
them the free rein. And how can you have competition when we have only
one rifenery everyone buys from it.
Jack Bell
Reply to John Pokiok
When did Holt start working for Irving?
Akimbo Alogo
Reply to Jack Bell
The hypocrisy is pretty thick here.
David Amos
Reply to John Pokiok
Good question
Rosco holt
The EUB is flawed. Just looking at electricity rates, residential customers aren't properly represented. On gas the refinery is most likely over represented like everything in NB.
Ronald Miller
Reply to Rosco holt
With his many years of valuable experience and superb leadership, Blaine Higgs would be an excellent choice as a member of the EUB.
Gilles Vienneau
Reply to Ronald Miller
Higgs is gone… forever. It is reality.
Geordan Mann
Reply to Ronald Miller
Is that you Blaine?
Steve Morningstar
Reply to Rosco holt
Wrong.. we have the third lowest electricity rates in the country (which is pretty good considering how much infrastructure we have and how low our population is)and much lower than NS or PE, Fuel was also generally lower than those two sister provinces.
Akimbo Alogo
Reply to Steve Morningstar
May be the third lowest rate, but the worst infrastructure and poorest maintenance. You get what you pay for i guess.
Steve Morningstar
Reply to Akimbo Alogo
When you have the population of Mississauga spread out in a province as big as NB, it is quite the undertaking just to keep things open and on without having massive price increases. I'm sure there are efficiencies that could be found but it isn't the doom and gloom that is perpetrated by this site. Even with the upcoming increase, which is a lot, we are still lower than NS and PE and you can bet they will also see an increase.
Rosco holt
Reply to Steve Morningstar
That is changing if the Empire gets it's way. Just last month, Irving went to the EUB to lower their rates stay competitive. Issue residential customers mostly haven't seen the same increases in their paychecks.
Akimbo Alogo
Reply to Steve Morningstar
"I'm sure there are efficiencies that could be found but..." - You think? Lets start with the bloated salaries from managerial up through executive level. Then we can go on to the obscene union employee salaries. Most of the linemen are moonlighting on the side as well. Rusting , rotting materials and equipment...losses due to theft caused by complete apathy (theres always money to buy more)...its absurd. Yeah, there might be ineffiencies. Lol.
David Amos
Reply to Rosco holt
"residential customers aren't properly represented"
I tried several times
Allan Marven
Sounds like an excellent idea. Start lobbying in Ottawa to brink an end to corporate welfare aka "supply management". Lets rememeber, we're all supposed to be in this together, through thick and thin.
David Amos
Reply to Allan Marven
Surely you jest
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