Government of New Brunswick

Starting April 1, 2019, New Brunswickers will pay a new federal tax on gasoline and home heating fuels.

The federal carbon tax will be applied to all fossil fuels sold in New Brunswick, including gasoline, diesel, natural gas, propane and all home heating fuels. The tax will be imposed on fuel production and distribution companies, which will pass on these costs to customers. This tax will increase every year until 2022, when New Brunswickers will pay the highest tax on gasoline in Canada. 

This new federal carbon tax will add up to hundreds of dollars in extra costs for New Brunswick families.

A rural family of four that own a truck and a sedan each travelling 20,000kms per year will pay approximately $230 more in gas in 2019. If the same family has an oil furnace with a capacity of 900 litres and fills that tank up three times a year, they will spend approximately $150 more per year. In addition, there will be increases in food and other goods they will be purchasing in the run of a year.

Here are some examples of the carbon tax impact:

A 50 litre tank of gas will cost an extra $2.54(an increase of 4.42 c/l).

If you drive 20,000 kms in 2019, your average annual cost increase will be:
  • Truck (14.5 L/100 kms) = $147.41
  • Mini van (11.2 L/100 kms) = $113.35
  • SUV (10.3 /L/100 kms) = $104.71
  • Sedan (8.8 L/100 kms) = $89.46
NB Power’s fossil fuel electricity generation units are exempt from the carbon tax and will be captured by the federal Output-Based Pricing System (OBPS.) The final standards (what NB Power will pay) have not been finalized. NB Power will not be subject to a carbon charge until late 2020.
Home Heating Oil
The carbon tax on home heating oil will be 5.37 c/l. The cost to fill an average oil tank (900L) will increase by $55.20. Assuming a typical home is heated with 2000 litres of oil annually, the average annual cost for a residential customer is estimated to increase by $107.40. This will depend on the fuel efficiency and size of the home.
Natural Gas
Starting April 1, the carbon tax on natural gas will be 3.91 c/m3. The average annual cost for residential customer of Enbridge Gas NB is estimated to increase by $90. (Source: Enbridge Gas New Brunswick).

 New Brunswick's position on the federal carbon tax

Why this tax is not necessary in New Brunswick

Even without this tax, New Brunswick is on track to meet Canada’s goal to cut emissions by 30 per cent below 2005 levels by 2030. Since 2005, the province has reduced its output by 28 per cent. With more than a decade left, we are on track to meet or surpass the federal goal by sticking to the 118 measures included in New Brunswick’s Climate Change Action Plan.

The federal carbon tax is supposed to encourage people to drive less and seek public transportation.

This fails to recognize that half of New Brunswickers live in rural areas with no options except personal vehicles to travel to school, work, appointments and activities.

This will also unfairly impact small and medium-sized businesses who will pay millions in additional carbon tax on fuel supporting their operations.

The carbon tax will not change behaviors and will unfairly penalize New Brunswickers.

What New Brunswick is doing about the federal carbon tax

Your government has joined a coalition of provinces opposing the federal carbon tax, including Saskatchewan and Ontario.

The provincial government has unveiled a framework to help develop an output-based pricing system for large industrial emitters of greenhouse gases. This system, an alternative to the federal government’s backstop plan, aims to reduce emissions while ensuring the province’s industries are not at a competitive disadvantage.

New Brunswick will continue to fight climate change by implementing our Climate Change Action Plan to reduce greenhouse gas emissions without placing a heavier tax burden on residents or suppressing economic growth.