News Release

FREDERICTON (GNB) – The provincial government has introduced amendments to the Petroleum Products Pricing Act and General Regulation to allow for a federal carbon tax to be added to regulated fuels sold in New Brunswick.

“While our government is against the carbon tax being imposed by the federal government, legislative steps need to be taken before it comes into effect on April 1,” said Energy and Resource Development Minister Mike Holland. “While we are challenging the matter in court, the carbon tax will still apply during the legal process.”

The proposed amendments will allow the federal carbon tax to be incorporated into the province’s regulated maximum price for gasoline, diesel, heating oil and propane.

Margins for petroleum products are based upon costs with a reasonable rate of return. If the amendments are not made prior to April 1, retailers in the province will be selling petroleum products with little to no margin.

Based on pricing changes set out by the federal government, consumers will pay 4.42 cents more per litre of gasoline purchased as of April 1.

“Any new tax, especially a carbon tax that will make everything you buy more expensive, is not the best approach to change behaviours and will only add unnecessary costs that hurt the economy and negatively affect New Brunswick families,” said Holland. “This federal carbon tax will unfairly burden New Brunswick’s rural households, those families who heat homes with oil or gas, and those who do not have the option to drive less.”

The stated goal of the federal government’s carbon pollution pricing system is to reduce greenhouse gas emissions. Holland said the province is already part of the solution to the global climate change challenge.

New Brunswick is on track to meet Canada’s 2030 goal of cutting emissions by at least 30 per cent of the 2005 level. Since 2005, the province has reduced its emissions by 24 per cent.