Higgs asks Ottawa to defer carbon tax, prompting criticism

Gas prices in Sackville on Wednesday, March 9, 2022. Photo: Erica Butler

Premier Blaine Higgs called for Ottawa to defer the federal carbon tax as fuel prices surged this week, prompting criticism from one energy policy expert.

In New Brunswick, the maximum total price of regular, self-serve gasoline stood at roughly $1.86 per liter on Thursday, after the latest increase. Diesel was even higher.

On Friday, the maximum allowable price for gas dropped to $1.71, but motorists still face a much higher-than-usual price at the pump.

CHMA spoke to motorists at the Esso station in Sackville on Wednesday about how the cost of fuel was affecting them:

An emailed statement attributed to Premier Blaine Higgs said he wanted to provide relief by asking Ottawa for a temporary deferral of the federal carbon tax.

It currently stands at 8.84 cents per litre in New Brunswick, and is scheduled to rise by two cents in April, reaching approximately 11 cents.

“We recognize the carbon tax is in place for a reason, chiefly to offset consumption of fossil fuels through higher pricing,” Higgs said. “But people may already be curbing their habits due to higher prices related to speculation in the industry.”

In New Brunswick, taxes on gasoline also include: 

-a 10 cent per liter federal excise tax;

-a provincial tax of 10.87 cents per litre;

-15 per cent HST, with five per cent for the feds and 10 per cent for the province. 

The proposal to defer the carbon tax comes against the backdrop of a global climate crisis. 

Louise Comeau, director of climate change and energy policy for the New Brunswick Conservation Council, says pausing the carbon tax is the wrong approach to high fuel prices. She spoke to CHMA on Wednesday.

Ottawa doesn’t plan to implement Higgs’ plan, according to a spokesperson for Dominic LeBlanc, Minister of Intergovernmental Affairs, Infrastructure and Communities.

“The federal price on pollution will remain and increase as scheduled at the end of this month,” Jean-Sébastien Comeau said in an email.

“New Brunswick designed its own carbon pricing system and has the ability to tailor it to local needs,” he said.

“If Premier Higgs wants to provide financial assistance to New Brunswickers, he has the ability send the revenues generated by New Brunswick’s carbon pricing system back to citizens by issuing rebates, as the federal government does in backstop jurisdictions.”

The so-called backstop applies in provinces without their own carbon pricing system, including Ontario, Manitoba, Saskatchewan and Alberta.

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