Gas prices to drop next week after Liberals tweak formula
CBC
The Holt Liberals have found a way to keep their promise of lower gas prices just days before Christmas.
Cabinet ministers adopted an order Thursday that changes how the Energy and Utilities Board calculates the maximum price of gasoline – a change that the government says should reduce prices by as much as seven cents a litre next week.
The change should take effect at the next weekly price setting by the EUB at midnight next Thursday, Dec. 18.
The fix gives Premier Susan Holt a second chance to claim an affordability win on gas prices.
Holt promised in last year’s election to eliminate the cost-of-carbon adjuster adopted by the previous Higgs government that required the EUB to calculate the cost of federal clean fuel regulations for producers and pass them on to customers.
The adjuster was officially eliminated Dec. 1, but the board replaced it with an equivalent fuel surcharge for customers after gas stations claimed they would be forced to absorb the cost.
The change adopted Thursday requires the EUB to base its pricing on a variety of gasoline called E10, a less expensive blend of gasoline and ethanol commonly used in the province, rather than conventional gasoline.
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