Get ready for some relief at the pumps. The New Brunswick government is removing the cost of carbon adjuster from its regulated fuel price formula, a move expected to lower the price of gasoline by seven to nine cents per litre starting December 1.

This change delivers on a key government promise aimed at making life more affordable for New Brunswickers. According to a news release from the Office of the Premier, the adjustment could save a typical household between $150 and $200 annually.

Delivering on an Affordability Promise

The decision comes after the government passed Bill 4, an act that gives it the authority to remove the adjuster. Premier Susan Holt emphasized the government’s focus on helping residents manage rising costs.

“At a time when so many are facing rising costs, this measure demonstrates our focus on affordability and our commitment to putting people first,” said Premier Holt. “It was important for us to keep our promise to New Brunswickers and fulfil a clear commitment to make life more affordable.”

The cost of carbon adjuster was first introduced in 2022 to account for costs related to federal clean fuel regulations. The government stated the decision to remove it now was made after a thorough review to ensure fuel supply stability and fairness for consumers.

Addressing Industry Concerns

While consumers will see lower prices, the government acknowledges that some in the fuel sector have raised concerns. Energy Minister René Legacy addressed this directly, noting that the Energy and Utilities Board (EUB) is equipped to handle the transition.

“I want to stress that the Energy and Utilities Board has the tools and ability to consider legitimate cost pressures and make fair, evidence-based adjustments through its established, transparent process,” Legacy said.

Officials believe recent margin adjustments made by the EUB have created the right conditions for this change, ensuring a smooth transition for retailers without disrupting the fuel supply for drivers.

Frequently Asked Questions

When does this change take effect?

The removal of the cost of carbon adjuster and the resulting price drop will take effect on December 1, 2025.

How much will I save on gas?

The price of gasoline is expected to decrease by approximately seven to nine cents per litre. For a typical household that fills up its vehicle once a week, this translates to an estimated annual savings of $150 to $200.

Why is the government doing this now?

The government states it is fulfilling a promise to make life more affordable for New Brunswickers. It acted after a review concluded that recent adjustments by the Energy and Utilities Board created stable conditions for removing the adjuster without negatively impacting the fuel supply.

What was the cost of carbon adjuster?

It was a component added to the province’s regulated fuel price formula in 2022. Its purpose was to reflect the costs that fuel suppliers faced due to federal clean fuel regulations.