New Brunswick’s Green Party leader is calling for the province’s energy development minister to resign over a letter he sent to the Energy and Utilities Board.
The board is reviewing an application from Irving Oil to increase wholesale margins for gasoline, diesel fuel and furnace oil amid rising wholesale costs.
It initially asked for an increase of 4.13 cents per litre, which included an “immediate interim” increase of 3.5 cents.
The company amended its application this week, asking instead for a 4.09 cent increase for motor fuels and a 3.02 cent increase for
Energy Development Minister Mike Holland wrote a letter to the EUB lending his support for an “expedited” review into the matter.
The move caught the attention of David Coon, the leader of the Green Party, who called it an “egregious abuse of power.”
“The EUB is an independent and quasi-judicial regulator that makes legally-binding rulings based on the evidence provided to them, and on the strength of the arguments made by the applicant and official intervenors. The minister must be held to account for trying to influence the work of the EUB,” said Coon.
The Opposition Liberals also condemned Holland’s action but did not go so far as to call for his resignation.
But René Legacy, the Opposition critic for Energy Development, agreed with the Greens that Holland’s actions amounted to interference.
“I don’t know who advised Minister Holland to do this, if he acted of his own accord, or if this move was supported by the premier, but it shows a blatant disrespect for the independence of the Energy and Utilities Board,” said Legacy.
Premier Blaine Higgs said he will not be asking Holland to step down as a result of the letter.
“There are significant concerns about the continuity of oil supply and the impacts that the current market and federal regulations will have on the oil refinery,” Higgs said in a statement.
“Given how this issue could have an impact on every aspect of our economy, especially during COVID-19, the minister was acting on behalf of government and the intent of the letter was to support a review.”
In its application, Irving Oil said the increases are needed urgently because of “numerous challenges” in the petroleum industry, compounded by the pandemic, which jeopardize supply continuity in New Brunswick.
The company said without cost recovery, it will not make economic sense to keep supplying retailers where the wholesale cost increases exceed what can be recovered from them.