New Brunswick Liberals say gas prices to drop by about 8 cents a litre with tax cut

FREDERICTON — New Brunswick’s government says it’s cutting a carbon tax that will reduce prices at the pump by about eight cents a litre, starting Dec. 1.

Premier Susan Holt had promised during last year’s election campaign to remove the carbon adjuster tax to help consumers with the high cost of living.

The tax, introduced in 2022, passes the cost of federal clean fuel regulations for refiners and retailers onto consumers. It varies weekly based on the cost faced by refiners.

“This will save you money at the pumps, around eight cents a litre today,” Holt told reporters Thursday. “It could result in savings of $150 to $200 for a typical New Brunswick household who fills up once a week.”

Natural Resources Minister John Herron said the government made its final decision to cut the tax after consultations with retailers, wholesalers, and the public.

He acknowledged that the tax cut may hurt rural gas stations, which generally have less revenue than urban locations, and may not be able to absorb the rate if it doesn’t get passed onto the consumer. But he said the province’s energy regulator “has the tools to protect consumers while also meeting the needs of wholesalers, retailers and industry.”

Progressive Conservative Leader Glen Savoie said the government is putting gas stations and small businesses at risk by removing the carbon adjuster tax.

“They may not be able to recoup their costs and if people start losing gas stations, as the industry is telling us, then people are going to have to drive further. It’s going to cost them more,” he said.

“This is not going to help people the way that this government is suggesting that it will.”

This report by The Canadian Press was first published Oct. 30, 2025.

The Canadian Press