Canada’s Highest Clean Fuel Charges Hit New Brunswick Drivers
Yes, clean fuel charges have raised New Brunswick fuel bills this summer. According to records from the New Brunswick Energy and Utilities Board, these federal charges averaged more than 12 cents per litre on gasoline from June through September 2026. This overtook the province's current 10.87 cents per litre gas tax for the first time and added up to $48 million to retail prices over the 22-week period, including HST.
The charges stemmed from the federal Clean Fuel Regulations, implemented in July 2023. These rules require oil companies to cut the carbon intensity of fuels by 15% by 2030. Carbon intensity measures how much carbon dioxide is released when fuel is burned. Lower intensity fuels emit less greenhouse gas per litre of energy delivered. Companies comply by blending in more ethanol, biodiesel or renewable diesel, or by buying carbon credits on a dedicated exchange if targets are missed.
Projections and What Actually Happened This Summer
A 2023 federal modelling report predicted clean fuel charges in New Brunswick would rise gradually and reach a peak of only eight cents per litre on gasoline in 2030. Diesel charges were forecast to peak at just 1.7 cents per litre. Instead, this summer gasoline charges ran between 11.66 and 12.34 cents per litre while diesel charges hit 13.75 cents per litre — eight times the original diesel forecast.
The jump occurred even as gasoline prices in New Brunswick stayed above $1.90 per litre for much of spring and summer 2026. Provincial gas taxes are lower than the federal clean fuel charge: why is New Brunswick’s clean fuel charge so high? The difference matters for households and businesses that buy fuel in the province.
How the Charges Reach the Pump
The regulations do not set a fixed price increase. Instead, the Energy and Utilities Board approves amounts that oil companies can pass to consumers. Companies have flexibility to pick the cheapest compliance method that works for them. In practice, the board calculates what drivers must pay based on historic consumption and the approved charge levels. This summer the approved amounts produced the $48 million total extra cost at the pump.
For a typical New Brunswick household, that extra 12-plus cents per litre adds up quickly on weekly errands, commuting or summer road trips. For small businesses that deliver goods or run fleets, the same charge raises operating costs that may be passed on to customers or absorbed as thinner margins. The policy was designed to create long-term incentives for cleaner fuels, but the near-term bill for consumers arrived sooner and larger than expected.
Expert Views on Reasonableness of the Amounts
Ian Thomson, past-president of Advanced Biofuels Canada, called the charges unreasonable. He said consumers should not pay more than necessary for environmental rules. Thomson noted that paying the full amount this summer would mean oil companies are using the most expensive compliance options available, like buying carbon credits instead of blending cheaper lower-carbon fuels. He compared it to a household food budget spent entirely on restaurant meals when cheaper home cooking is possible.
The New Brunswick government does not share Thomson’s view that the charges are too high. Premier Susan Holt promised in the 2024 election to stop passing clean fuel charges to drivers and make oil companies pay their own costs. The government later reneged on that promise. Energy Minister René Legacy said he remains confident the board’s calculations are correct and that drivers are being charged the right amount.
What the Regulators and Oil Companies Say
The board itself has admitted it has little direct information on how the three main fuel suppliers — which include Irving Oil and Valero — actually meet their compliance obligations or at what exact cost. The board wrote that it knows only that the companies are complying and that a compliance cost exists. A consultant hired by the board spoke with the suppliers and reported they each claimed significant costs from the federal rules.
Environment and Climate Change Canada’s spokesperson pointed to the board for answers about why New Brunswick charges ran so far above the original eight-cent forecast. The federal modelling report submitted in January 2024 had projected gradual growth to an eight-cent peak. That modelling did not match what happened this summer.
Broader Policy Context and Uncertainty
The Clean Fuel Regulations followed seven years of federal consultations. The goal is a steady shift toward lower-carbon fuels across Canada. Yet the pass-through to consumers has produced higher pump prices than projected. Provincial taxes, including New Brunswick’s, still add more to prices than the federal clean fuel rules in some cases, but not for gasoline in New Brunswick this summer.
The uncertainty lies in how much of the current charge reflects real compliance costs versus other factors. Companies can choose different compliance paths, and the board has limited visibility into their actual spending. Future charge levels will depend on how quickly oil companies reduce carbon intensity through blending or credits and on any adjustments the board may approve.
As the regulations continue toward the 2030 target, New Brunswick drivers and businesses will continue to see these charges at the pump. The experience this summer shows that federal environmental policy can produce consumer costs higher than expected in the short term, even as the long-term aim is cleaner fuel use. Households should watch the next board hearing and any updates to the approved charge levels for the next driving season.