The Holt Liberals have implemented a new strategy to reduce gas prices in New Brunswick just before the holiday season. On a recent Thursday, cabinet ministers adopted a change affecting how the Energy and Utilities Board (EUB) sets gasoline prices. This modification is anticipated to lower prices by up to seven cents per litre starting next week.
Adjustments to Pricing Formula
The recent change pertains to the Petroleum Products Pricing Act, which will alter the calculation methods for maximum gasoline prices. The EUB’s next price-setting review is scheduled for midnight on December 18.
Promises of Lower Prices
Premier Susan Holt aims to deliver on her campaign promise of reduced gas costs. She previously pledged to eliminate the cost-of-carbon adjuster instituted by the former Higgs government. This adjustment required the EUB to account for federal clean fuel regulations in price calculations, resulting in higher costs for consumers.
- The adjuster was officially eliminated on December 1.
- It was replaced with a similar fuel surcharge to help gas stations manage costs.
Introduction of E10 Fuel Pricing
The latest regulatory change mandates that the EUB consider E10, a more affordable blend of gasoline and ethanol, when determining prices. This blend is already common within the province.
Holt expressed satisfaction that a team member discovered this opportunity to revise the pricing. She conveyed optimism that this adjustment would lead to a decrease of five to seven cents at the pump by the following Friday.
Comparative Industry Practices
Notably, Nova Scotia made a similar pricing change earlier in 2024, which had previously gone unnoticed by New Brunswick policymakers. The cabinet order was hastily prepared, and usual regulations requiring a 28-day public review were waived, allowing swift implementation.
Reactions from Opposition and Other Parties
The Opposition Progressive Conservatives, however, expressed skepticism regarding the effectiveness of these measures. MLA Kris Austin highlighted prior promises of lower prices that did not materialize after removing the adjuster.
- “We’ve heard these announcements over and over,” Austin stated.
- He urged the government to provide clear and definitive results.
Conversely, Green Party Leader David Coon welcomed the announcement, appreciating the pre-Christmas surprise for consumers. Coon noted that the blending of ethanol has effectively led to the production of lower-emission fuels. He suggested that New Brunswick consumers may have been overpaying for gasoline because the EUB used a higher-cost fuel in its pricing model.
In summary, the recent changes made by the Holt Liberals regarding the calculation of gas prices represent a significant step toward fulfilling promises of affordability. With the expected price drops coming just before the holidays, it remains to be seen how these measures will be received by the public.
