New Brunswick drivers can expect to see relief at the pump starting December 1, as the provincial government cuts a carbon tax that officials say will reduce fuel prices by approximately eight cents per litre.
Premier Susan Holt announced Thursday that the carbon adjuster tax, introduced in 2022, will be eliminated to help consumers cope with ongoing cost-of-living pressures.
Province to Remove Carbon Adjuster Tax in December
The carbon adjuster was designed to pass along costs associated with federal clean fuel regulations from refiners and retailers to consumers. The amount varied weekly based on fuel production and distribution costs.
“The carbon adjuster tax will be gone starting December 1,” Holt confirmed during a press conference alongside Energy Minister René Legacy and Natural Resources Minister John Herron. “This change delivers on our commitment to make life more affordable for New Brunswickers.”
Holt had pledged to remove the tax during her election campaign last year, calling it an unnecessary burden on households already struggling with inflation and rising prices.
Government Consulted with Industry and Public
Minister John Herron said the decision followed extensive discussions with retailers, wholesalers, and members of the public.
“This reduction is a responsible step to provide relief for consumers while maintaining a sustainable approach to energy pricing,” Herron said.
The government expects the cut to have an immediate impact, lowering prices across the province as refiners and fuel distributors adjust to the new tax framework.
Background: The Carbon Adjuster Tax
Implemented in 2022, the carbon adjuster tax was intended to offset the cost of federal clean fuel standards, effectively passing those expenses to consumers. With global energy prices and inflation already straining budgets, the measure quickly became controversial among both businesses and residents.
By removing the tax, New Brunswick aims to make fuel more affordable and ease transportation costs for residents and businesses alike.
Key Takeaway
The carbon tax cut marks one of the Holt government’s first major affordability measures since taking office. With prices set to drop by about 8 cents per litre, drivers across New Brunswick could start seeing savings at the pump within weeks.
Source: The Canadian Press, Government of New Brunswick
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