New BrunswickNew Brunswick Premier Susan Holt says her government is re-committing itself to keeping an election promise to terminate ‘carbon adjuster charges’ consumers pay on gasoline and diesel, with December the new deadline for ending the levy.Companies thought the 2024 election commitment had been abandoned months agoRobert Jones · CBC News · Posted: Sep 22, 2025 5:00 AM EDT | Last Updated: 2 hours agoNew Brunswick Premier Susan Holt has recommitted her government to eliminating charges on petroleum that had been meant to compensate oil refineries and importers for tough new federal environmental rules. (Ben Curtis/The Associated Press)After months of delay, New Brunswick Premier Susan Holt says her government is re-committing itself to keeping an election promise to terminate “carbon adjuster charges” consumers pay on gasoline and diesel, with December the new deadline for ending the levy.”We committed to getting that carbon adjustor off of the backs of New Brunswickers and we are going to meet that commitment this year,” Holt said in an emailed statement to CBC News Petroleum companies, who thought they had talked the government out of ending adjuster charges months ago, are expressing alarm at the rebirth and warning of “catastrophic” consequences to their businesses if the new commitment is genuine.At an Energy and Utilities Board hearing held earlier this month to examine petroleum wholesale margins, retailers and wholesalers seemed more concerned with the notion that the carbon adjuster was back on the chopping block than they were about where wholesale prices are headed.”It has raised its ugly head again,” David Knight said about the re-announced plan to cut adjuster charges. WATCH | Petroleum retailers warn of ‘catastrophic’ impact if carbon cost adjuster is tossed:Gas industry doesn’t want Holt to cancel carbon cost adjusterPremier Susan Holt says refineries, not consumers, should bear the burden of stricter federal environmental standards on oil refineries. Knight was at the EUB hearing representing a variety of stations through the Canadian Energy Marketers Association and Convenience Industry Council of Canada.”We thought it was a done matter, that it had been adequately addressed many, many times in different channels and communicated to government,” he said.The adjuster was created by the former Progressive Conservative government of Blaine Higgs in 2023 to allow oil companies to pass the cost of new federal environmental standards for refineries and fuel importers through to consumers.Carbon adjuster charges in New Brunswick are adjusted weekly. Currently they are set at 7.79 cents per litre for gasoline and 8.68 cents for diesel, plust HST. (Robert Jones/CBC)The amount charged changes weekly based on a formula adopted by the New Brunswick Energy and Utilities Board. Currently, the charge on gasoline adds up to $3.11 (plus HST) on a 40-litre fill-up.Last year, as leader of the official opposition, Holt denounced the adjuster as unfair to consumers. She argued refineries should be paying the price of adhering to their own environmental standards. During at least seven separate question period skirmishes with Higgs in the legislature, she demanded he retract the policy.”The price should be put on the refiners,” Holt said to Higgs during one of those exchanges in May 2024.Holt then promised in last October’s provincial election campaign that a government led by her would eliminate the adjuster charge “immediately” from gas prices. However, after taking office, her government balked and has so far retained the charge.New Brunswick Finance and Energy Minister René Legacy stunned petroleum companies in August when he first announced a dormant election commitment to end carbon adjuster charges would be kept after all. (Jacques Poitras/CBC)In June, legislation was passed by the legislature to end the adjuster levy but has not yet been proclaimed because of concerns MLAs heard during hearings about the proposed law that independent retailers and rural gas stations in particular need the revenue the adjuster charge has been generating. However, in August, as the Energy and Utilities Board was in the midst of preparing to adjust retail and wholesale margins available to petroleum companies under New Brunswick’s regulated market, Finance and Energy Minister René Legacy said in a statement to CBC News that the adjuster charge would be eliminated as promised — as soon as both of those new higher margins were set.”Once those reviews are completed and margins adjusted accordingly to ensure small and medium retailers are not being squeezed and relying on revenue from the cost of carbon adjuster to fund their operations, we will proclaim the legislation,” said Legacy’s statement.A decision on new higher margins for gasoline was released by the board earlier this month. The second decision on higher wholesale margins is pending.David Knight (lower centre), who represents New Brunswick gasoline and convenience stores, and James MacDuff (top right), a lawyer for Irving Oil, both told the EUB there will be significant trouble for petroleum companies if carbon adjuster charges are eliminated. (Energy and Utilities Board/YouTube)At hearings into those wholesale margins several industry participants predicted a quick financial disaster for some operators if the pledge to end the two year old charges is carried out.Knight said it would be a sudden and disastrous change to the market for many.”We use the word ‘catastrophic’ impact on industry if the CCA [carbon cost adjuster] were cancelled without a substitute,” he told the board. Should government cancel the [carbon cost adjuster], industry will be losing massive amounts of money the next day. And we just can’t have that.— David Knight”We really are in a situation where, should government cancel the CCA, industry will be losing massive amounts of money the next day. And we just can’t have that.”Irving Oil’s lawyer James MacDuff endorsed Knight’s view and said without a “substitute” charge instituted on consumers when the adjuster charge is eliminated it will be a “big problem” for industry.”I think everyone in this room would agree with that,” said MacDuff.Carol Montreuil, with the Canadian Fuels Association, said it is ‘ludicrous’ if the New Brunswick government thinks terminating the two-year-old carbon adjuster charge without replacing it with something similar won’t have ‘dire consequences’ for retailers. (Radio-Canada)Carol Montreuil is with the Canadian Fuels Association. He attended that EUB hearing and in an interview said in the retail petroleum business local stations often compete over price differences of just one and two cents per litre. He believes eliminating a revenue source of seven or eight cents will hit many businesses hard.”Thinking you can do that without dire consequences is ludicrous,” said Montreuil.In her emailed statement, Holt said she is aware of industry concerns but said the promise to end the adjuster charge will be kept.”We’ve been following the EUB hearings closely to understand all perspectives. We remain committed to removing the carbon adjuster and delivering affordability relief for New Brunswickers,” said the statement.ABOUT THE AUTHORRobert Jones has been a reporter and producer with CBC New Brunswick since 1990. His investigative reports on petroleum pricing in New Brunswick won several regional and national awards and led to the adoption of price regulation in 2006.
Holt’s renewed vow to end clean fuel charges on consumers is rocking petroleum industry
