New Brunswickers will pay considerably more at the fuel pumps when Ottawa’s new Clean Fuel Regulations come into effect.
The New Brunswick Energy and Utilities Board (NBEUB) has approved a new formula for the “cost of carbon adjustor.”
In its 13-page ruling released Tuesday, the utility said the increase will likely be in the range of eight cents per litre.
“While this amount is only a sample at a particular moment, and there will be some variables on each weekly calculation, it is indicative,” said the NBEUB.
While the new regulations come into effect on Canada Day, the utility said consumers will not see an impact until the first regular weekly price setting on July 7.
The increase is on top of the roughly three cent per litre increase to the so-called carbon tax scheduled to take effect on July 1.
The new clean fuel regulations require gasoline and diesel suppliers to reduce the amount of pollution from the fuels they produce.
New Brunswick passed legislation in December allowing for the costs incurred by suppliers to be passed on to consumers through the cost of carbon adjustor.
NBEUB said it will review the new mechanism every six months “to determine its ongoing appropriateness based on both current market conditions as well as the evolution of carbon credit trading systems in Canada.”
In the meantime, the utility said all industry stakeholders will need to do their part in helping the public to understand the cost of carbon adjustor.
It said increasing annual reductions in pollution required each year until 2030 will only have upward pressure on the adjustor over time.
“The Board will do what it can to describe its mandate and the background of the new cost of carbon adjustor component when setting maximum petroleum prices. However, all industry stakeholders are urged to work to enhance public understanding of the basis of the new adjustor,” it said.
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