
N.B. petroleum retailers make case to replace 8 cent fuel charge that expires Monday
CBC
Oil companies and retailers endured a barrage of pointed questions in front of the New Brunswick Energy and Utilities Board Thursday in their effort to undo a provincial government decision to eliminate refinery environmental charges from fuel prices starting next week.
Board Chair Christopher Stewart pressed David Knight of the Convenience Industry Association of Canada on if he was asking the energy tribunal to effectively change a decision the legislature has already made.
"Isn't that a statement by the legislature," Stewart said about the coming pricing change.
"Isn't it just as simple as that?"
The environmental charges — which allow refiners and fuel importers to pass the cost of tightening federal environmental rules through to consumers — were authorized nearly three years ago by the former Blaine Higgs government.
They currently add up to 7.9 cents per litre for gasoline and 8.8 cents for diesel, plus HST, at New Brunswick gas stations.
New Brunswick Premier Susan Holt has argued oil companies should be paying for their own environmental costs and her government passed legislation to remove the charges from New Brunswick's regulated fuel pricing formula effective Dec. 1.
However, because New Brunswick does not regulate charges between oil companies, wholesalers and retailers and only enforces the final price to consumers, retailers have expressed concern that oil companies will continue to bill them for the federal environmental costs.
If that happens, they argue many stations in rural areas will quickly struggle to survive when seven or eight cents per litre is cut out of what they can pass through to consumers on the first of the month.
Peter Clark, operator of Woodstock fuel supply business Clark Oil, predicted swift consequences in rural areas if businesses like his and those he supplies are unable to recover costs they will still be facing after Dec. 1.
"As an industry and as a private company, I know we cannot sustain this massive price change as of Dec. 1," said Clark.
"We desperately need help from the board."
Retailer Chris Scholten of the Scholten Group made a similar prediction.
"Stores will close, jobs will be lost and people will have to drive further for fuel," he said.













