Fuel prices in New Brunswick rose Sunday for the third time since Thursday. Meanwhile, consumers in the other two Maritime provinces are paying much less.
© / Radio-Canada
Gasoline is getting more and more expensive.
The New Brunswick Energy and Utilities Board authorized increases on Thursday and Sunday due to changes in benchmark oil prices on the world market. An increase also came into effect on Friday because of the federal government’s carbon tax, an increase from which the other Maritime provinces are exempt.
The maximum authorized price per liter of self-serve regular gasoline has increased by a total of 19.6¢ in four days in New Brunswick. On Monday morning, it is about 14¢ above the price in Nova Scotia.
Normally, the commission adjusts the prices of petroleum products on Thursdays. However, a clause in the law allows it to change the maximum price at the pump in less than 24 hours when there is too great a variation in the benchmark price on the markets. Regulators in the other two provinces have more leeway to react to changes in subsequent days.
Excluding the carbon tax, the maximum authorized price per liter of gasoline in New Brunswick increased by 9.8¢ on Thursday and by 7.2¢ on Sunday. Meanwhile, in Nova Scotia, the price changed only once: a drop of 5.5¢ on Friday.
The rules in New Brunswick sometimes result in a sudden drop in prices, as was the case on March 11 when the price of diesel was 24¢ below the legal limit in Nova Scotia. Sometimes the opposite happens, like Friday when gas prices were 29¢ higher than in Nova Scotia.
The effects of the carbon tax
The tax on carbon dioxide emitting products imposed by Ottawa increased from $40 to $50 per tonne on April 1, which increased the carbon tax in New Brunswick to 11.05¢ per liter of gasoline and at 13.41¢ on diesel.
That same tax in Nova Scotia is 1.18¢ on gasoline and 1.5¢ on diesel and it has not changed as of April 1. In 2019, this province opted for a complex system of capping and trading emission rights that allows it to avoid considerable increases.
Higher carbon costs in New Brunswick are partially offset by lower income taxes and other measures, but have a significant effect on the price of fuels at the pump.
Louise Comeau, director of climate change and energy at the Conservation Council of New Brunswick, denounced the difference between the provincial systems during an interview given earlier this year. According to her, a more coherent approach would be preferable.
The federal government is committed to reducing carbon pricing differentials between provinces, but that can’t start in Nova Scotia until 2023.
Meanwhile, Prince Edward Island was supposed to start imposing the same carbon price as New Brunswick last Friday, but failed to pass the necessary legislation in time. However, she promises to do so this week.
According to a report by Robert Jonesfrom CBC