Furnace Oil Prices In New Brunswick

The price of furnace oil in New Brunswick has been a cause for concern for many residents, with prices driven up by pre-election regulatory changes. The New Brunswick government's decision to charge consumers diesel prices for furnace oil has resulted in some of the highest fuel prices in the region. This has led to discontent among residents, who are now paying more for furnace oil than their neighbouring provinces. The current maximum price of furnace oil in New Brunswick is $1.94 per litre, with prices expected to continue rising. This has caused financial strain, especially for those on fixed incomes, and has led to worries about the upcoming winter months.

The maximum price of furnace oil in New Brunswick is $1.94 per litre

The impact of these changes is significant, with residents like Dayne Dunn, a homeowner in Boiestown, reporting that he spends about $650 every two weeks on furnace oil. This has caused financial strain, with Dunn sharing that his oil bill is now almost double what he paid in rent for an apartment in the city.

The situation is even more challenging for seniors on fixed incomes, who are forced to cut back on other expenses to afford both their medication and heating. New Brunswick Green Party Leader David Coon has suggested that the government should better promote the Low-Income Energy Savings Program, which could reduce eligible participants' oil bills by 30%.

The province's Energy Minister, Donald Arseneault, has expressed a willingness to revert to the previous pricing regulations if a solution can be found that won't harm small businesses. However, Arseneault also noted that it is still early to determine if the changes were the right decision, and they will continue to monitor the situation.

New Brunswick consumers pay diesel prices for furnace oil

New Brunswick consumers are paying diesel prices for furnace oil, a situation that has been caused by pre-election regulatory changes. This decision by the New Brunswick government has driven up the cost of fuel in the province, making it one of the highest in the region. The current price of furnace oil in New Brunswick is $1.94 per litre, a significant increase from the previous price.

This change has had a significant impact on the residents of New Brunswick, with many struggling to keep up with the rising costs. Dayne Dunn, a homeowner in Boiestown, NB, shares his experience, stating that he spends about $650 every two weeks on furnace oil, which has been incredibly taxing on his finances. He is not alone in his struggles, as the Coalition for Seniors has also expressed concern for individuals on fixed incomes, who are forced to cut back on other expenses to afford heat and medication.

The price difference between New Brunswick and neighbouring regions further highlights the impact of the regulatory changes. For example, in Prince Edward Island, furnace oil prices are 13 to 14 cents per litre cheaper than in New Brunswick. Even more striking is the comparison with Bangor, Maine, where furnace oil prices are 20 cents lower, and in Portland, Maine, they are 27 cents per litre less.

The New Brunswick government implemented this change to support small, home delivery companies that were previously charged diesel prices by oil companies, pushing them to the brink of failure. However, this decision has inadvertently led to higher prices for consumers, causing concern among residents and discussions about potential solutions.

With the ongoing war in Ukraine and other market factors, experts predict that prices are unlikely to decrease anytime soon, leaving many New Brunswick residents anxious about the upcoming winter and its impact on their heating bills.

The high cost of furnace oil is forcing some New Brunswickers to cut back on other expenses

The rising cost of home heating oil is causing financial strain for some residents of New Brunswick, with prices reaching as high as $1.94 per litre. This has led to difficult choices for many, forcing them to cut back on other expenses or risk falling into debt.

Dayne Dunn, a homeowner in Boiestown, shared his concerns about the increasing cost of furnace oil, stating that he spends about $650 every two weeks, which is even higher than his monthly mortgage payments. Dunn is not alone in his struggles, as the Coalition for Seniors has also voiced worries about the impact of high heating costs on individuals with fixed incomes. Cecile Cassista, the executive director of the Coalition for Seniors, stated that seniors have been forced to reduce spending on other essentials like food and medication just to cover their heating expenses.

The high prices of furnace oil are attributed to pre-election regulatory changes made by the former Progressive Conservative government of David Alward. These changes allowed oil companies to charge diesel prices to small retailers, even though they were purchasing furnace oil. As a result, small retailers were put in a difficult position, unable to pass on the increased costs to consumers due to the regulated maximum price. This led to shrinking margins, threatening the survival of these businesses.

In response to the concerns of small businesses, the provincial government spokesperson, Veronique Taylor, defended the decision by stating that it was necessary to prevent these companies from going out of business. However, the change has had unintended consequences, resulting in some of the highest prices for consumers in the region. New Brunswick's Energy Minister, Donald Arseneault, has expressed a willingness to reconsider these regulations if a solution can be found that does not harm small retailers.

With the ongoing war in Ukraine and other market factors, industry experts do not anticipate a decrease in prices anytime soon. As winter approaches and demand increases, residents of New Brunswick are anxious about the potential financial burden they will face to keep their homes warm. Some are already considering difficult choices, such as deciding between paying for food or heating their homes.

The price of furnace oil in New Brunswick is higher than in Prince Edward Island

The price of furnace oil in New Brunswick is influenced by various factors, including supply and demand dynamics, seasonal fluctuations, and geographical location. In recent times, the New Brunswick government's decision to allow consumers to be charged diesel prices for furnace oil has significantly impacted the cost of furnace oil in the province. This regulatory change, implemented before the provincial election campaign in August, was intended to aid small home delivery companies facing challenges due to high diesel prices charged by oil suppliers.

As a result, New Brunswick now has some of the highest furnace oil prices in the region. Notably, the prices are higher than those in neighbouring Prince Edward Island. This price discrepancy has left some New Brunswick residents, like Saint John resident Daphne Reid, questioning the fairness of the situation, especially considering the proximity of Saint John to the Irving Oil Ltd. refinery, which supplies much of Prince Edward Island's furnace oil.

On the same day in November, Reid purchased furnace oil at a price 13 cents per litre higher than the price in Prince Edward Island. Such price differences have persisted throughout the fall, with Prince Edward Island companies selling furnace oil for up to 14 cents per litre cheaper than in New Brunswick. This disparity has prompted discussions among government officials, with New Brunswick's Energy Minister, Donald Arseneault, expressing a willingness to reconsider the regulation if it can be done without harming small businesses.

The price discrepancy between New Brunswick and Prince Edward Island can be attributed to the different regulatory approaches taken by their respective provincial governments. Prince Edward Island has not experienced the same issues as New Brunswick because it mandates that oil companies charge small resellers furnace oil prices when they are buying furnace oil. This consistent pricing structure has helped maintain lower prices for consumers in Prince Edward Island, even as their neighbours in New Brunswick grapple with higher costs.

The higher prices in New Brunswick have also been a point of comparison with other regions, such as Maine, which imports much of its fuel from New Brunswick yet continues to charge consumers furnace oil prices, not diesel. For instance, in Bangor, furnace oil prices were 20 cents lower than in New Brunswick, and in Portland, they were 27 cents per litre cheaper. These price discrepancies highlight the impact of regulatory decisions on the cost of furnace oil for consumers and the need for a balanced approach that considers both the stability of small businesses and the affordability of heating fuel for residents.

The price of furnace oil is expected to remain high due to the ongoing war in Ukraine

The price of furnace oil is expected to remain high in New Brunswick due to the ongoing war in Ukraine

The ongoing war in Ukraine has caused a profound and permanent shift in the global oil market, creating new geopolitical alliances and disrupting the flow of oil and gas. These factors have contributed to a sharp increase in oil prices, which were already inflated before the war began.

In New Brunswick, the price of furnace oil has been driven up by pre-election regulatory changes, which allow consumers to be charged diesel prices for furnace oil. This has resulted in New Brunswick having some of the highest fuel prices in the region. The current maximum total price (including HST) for furnace oil in the province is 138.9, although the actual price paid by consumers may be higher due to diesel prices.

The war in Ukraine has led to a significant increase in crude oil prices, with both major oil benchmarks trading above $110, representing a further 15% increase over last week. This has been driven by the disruption to supplies, as Europe seeks alternatives to Russian oil and Russia finds new markets for its production, mainly in India and China. The Biden administration's ban on Russian oil imports to the US has also contributed to the upward pressure on prices.

In the short term, there are some mechanisms that could be used to lower oil prices, such as decreasing or suspending federal and state taxes on gasoline and diesel. However, these measures would only have a limited impact, and it seems that we are in for a prolonged period of high energy prices. This will have a knock-on effect on the cost of goods and services, as high energy prices contribute to the increased cost of production and transportation.

The energy transition to clean energy sources is also likely to be impacted by the war, as energy security and affordability take priority over climate change and sustainability. However, the high prices of oil could also improve the economics of alternatives like electric or hydrogen vehicles.

Frequently asked questions