Carbon tax and clean fuel regulations

We're standing up for you.


This July, the federal carbon tax and clean fuel regulations will impact you. It will cost you more for almost everything including groceries, heat, and other necessities. It all adds up. 

We are calling on the federal government to delay these measures and make life more affordable for everyone. 


The carbon tax and clean fuel regulations impact

Gasoline

A 50-litre tank of gas will cost an extra $6.47 (a total increase of 11.26 cents per litre based on: 3.26 cents per litre carbon tax and 8 cents per litre clean fuel regulation*). 

If you drive 20,000 kms in 2023, your average annual cost increase (including HST) will be:

  • Truck (14.5 L/100 kms) = $375.52
  • Mini van (11.2 L/100 kms) = $290.06
  • SUV (10.3 /L/100 kms) = $266.75
  • Sedan (8.8 L/100 kms) = $227.90

*The clean-fuel regulations for retail gasoline and diesel prices will be calculated weekly. This rate will fluctuate.

Electricity

NB Power’s fossil fuel electricity generation units are exempt from the federal carbon tax and will be captured by the provincial Output-Based Pricing System (OBPS.) The NB OBPS electricity standards have been designed to meet federal stringency requirements while also minimizing the impact to provincial electricity rate payers.

Home heating oil

The carbon tax on home heating oil will increase to 17.38 cents per litre. The cost to fill an average oil tank (900L) will increase by $179.88. Assuming a typical home is heated with 2000 litres of oil annually, the average annual cost for a residential customer is estimated to increase by $399.74.

Natural Gas

Starting July 1, the carbon tax on natural gas will be 12.39 c/m3. The average annual cost for a residential natural gas user is estimated to increase by $285.


Why the federal carbon tax is not necessary in New Brunswick

Even without this tax, New Brunswick is on track to meet Canada’s goal to cut emissions by 40-45% below 2005 levels by 2030. Since 2005, the province has reduced its greenhouse gas emissions by 39% and we have a provincial 2030 target of 47% below 2005 levels, exceeding the federal goal. The government has committed to reaching net zero by 2050.

We are part of the climate change solution. Through our renewed climate change action plan, the province is positioning itself to attract clean investments, create good jobs and opportunities for businesses that take advantage of new technology, and market New Brunswick as a green hub through decarbonization. 

The federal carbon tax is supposed to encourage people to drive less and seek public transportation.

This fails to recognize that half of New Brunswickers live in rural areas with no options except personal vehicles to travel to school, work, appointments and activities. 

This will also unfairly impact small and medium-sized businesses who will pay millions in additional carbon tax on fuel supporting their operations.

The carbon tax will not change behaviors and will unfairly penalize New Brunswickers.

Clean Fuel Regulations

In addition to the federal carbon tax, Canadians will be hit with another increase in prices this July, as a result of the federal clean fuel regulations. We anticipate this will result in higher prices for everything that is shipped.  This means it will cost you more for almost everything including groceries, heat, and other necessities. 

New Brunswick has made amendments to how regulators set maximum prices because if this change was not made, small retailers in the province would have to absorb the additional cost of the federal government’s clean fuel regulation. This would significantly impact any profit they make and jeopardize their ability to continue to operate, particularly in rural communities where sales volume is lower.

Although there is no set value like the carbon tax, indications are that prices may go up by as much as 8 cents per litre as a result of the clean fuel regulations. This value may change over time, up or down, as regulators have more information on how to set the price to achieve lowest prices possible without jeopardizing the continuity of supply.

 

Federal measures taking effect on July 1, 2023, will significantly increase prices for gasoline and diesel and create additional inflationary pressures on families, and more vulnerable people.


Information and resources

Climate Change

Learn how the government is leading action on climate change, and how New Brunswickers can take action too.

Our Pathway Towards Decarbonization and Climate Resilience (PDF)

New Brunswick's Climate Change Action Plan