Gas Price Changes In New Brunswick

Gas prices in New Brunswick change weekly, with the Energy and Utilities Board resetting pump prices on Thursdays. CBC News estimates fuel price changes each week based on internal calculations. Drivers in New Brunswick can expect higher bills on Fridays and over the weekend, as prices tend to increase significantly overnight.

Gas prices change weekly in New Brunswick

Gas prices in New Brunswick change weekly, with the Energy and Utilities Board (EUB) setting new prices every Thursday. While the EUB's decisions are based on a variety of factors, CBC News has its own internal calculations to estimate weekly fuel price changes.

The EUB's weekly price adjustments can result in significant changes for drivers in New Brunswick. For example, in March 2020, a steep decline in the markets for gasoline triggered a special price setting at midnight, leading to a 10-cent reduction by Wednesday morning.

The weekly price changes in New Brunswick can be influenced by various factors, including supply and demand dynamics, as well as the federal carbon tax. Dan McTeague, president of Canadians for Affordable Energy, noted that tight supply and high demand were contributing to rising energy prices across North America.

Additionally, McTeague highlighted the impact of the federal carbon tax on fuel costs, stating that removing this tax could result in a significant drop in prices of around 29 to 30 cents per litre. He also predicted a temporary relief in prices due to a recent decrease in other areas of the continent, which could eventually affect the Maritime region.

Weekly price changes can be a challenge for drivers, as Alwyn Jeddore, a Nova Scotia resident, expressed frustration over the constant fluctuations in gas prices. He highlighted the financial burden, especially with the high cost of living, and hoped for a decrease in both gas and grocery prices.

The Energy and Utilities Board resets pump prices

The Energy and Utilities Board (EUB) in New Brunswick has a significant role in determining the prices at the pump for drivers in the province. The EUB is responsible for setting the maximum prices for different types of fuel, including regular gasoline, mid-grade gasoline, premium gasoline, and ultra-low sulphur diesel. These prices are adjusted periodically, and the changes can have a notable impact on consumers' fuel costs.

The EUB's decisions on fuel prices are based on various factors, including market trends, supply and demand dynamics, and the cost of crude oil. In some cases, special price settings may be triggered due to steep declines or increases in the market prices for gasoline. For instance, a significant drop in gasoline prices on Monday can lead to a special price setting at midnight, resulting in a reduction in pump prices the following morning.

While the EUB sets the maximum prices, the actual prices paid by consumers at the pump can vary. Gas stations have the flexibility to offer fuel at prices lower than the maximum set by the EUB. This competition among gas stations can benefit consumers, especially those who are price-conscious and actively seek out the best deals.

The frequency of price changes by the EUB can vary. In New Brunswick, the EUB typically resets pump prices on a weekly basis, with Thursdays being the usual day for price adjustments. This regularity allows consumers to plan their fuel purchases accordingly and stay informed about the cost of their fuel needs.

The EUB's role in setting fuel prices is essential for maintaining a balance between the interests of consumers and the fuel industry. While consumers want affordable prices, the industry needs to ensure that prices cover the costs of production, distribution, and taxes. The EUB's decisions aim to strike this delicate balance and provide transparency in fuel pricing for New Brunswick residents.

Gas prices are highest in Cape Breton

In New Brunswick, the Energy and Utilities Board (EUB) resets pump prices weekly on Thursdays. While the EUB sets the prices, gas stations are not required to change their prices immediately.

Additionally, the limited competition among gas stations in Cape Breton means that prices can remain high without the risk of losing customers to nearby competitors. The high prices can also be attributed to the relatively small population of the region, which results in a lower demand for gasoline. This lower demand can lead to higher prices as gas stations seek to maintain their profit margins.

Furthermore, the unique geography of Cape Breton, with its rugged terrain and limited road access, can also contribute to higher gas prices. The challenging logistics of delivering fuel to the region can result in increased transportation costs, which are ultimately reflected in the prices at the pump.

It's worth noting that while Cape Breton experiences high gas prices, there can be variations within the region. Some gas stations may offer slightly lower prices due to factors such as local competition or special promotions. However, overall, Cape Breton residents consistently face higher fuel costs compared to other parts of the province or country.

Gas prices are lower in New Brunswick than Nova Scotia

Gas prices in New Brunswick and Nova Scotia are set by their respective provincial Energy and Utilities Boards. The boards set maximum petroleum prices that can be charged by retailers once a week, with New Brunswick setting prices on Thursdays and Nova Scotia on Fridays.

While the two provinces base their price ceilings on the same trading numbers set daily by international petroleum and currency markets, there are some differences in the methods each province uses, which can lead to price discrepancies. For example, Nova Scotia blends five days of petroleum market trading data together to set its weekly retail pricing limit, while New Brunswick's pricing formula may not pick up on all the lower trading prices used by Nova Scotia.

In addition, New Brunswick has higher fuel and carbon taxes than Nova Scotia, including 3.5 cents more on gasoline and 11.5 cents extra on diesel. These tax differences, combined with quirks in Maritime retailing regulations and fluctuations in the U.S. petroleum markets, can contribute to lower gas prices in Nova Scotia compared to New Brunswick.

For instance, in February 2024, gas prices in Nova Scotia were up to 14 cents cheaper than in New Brunswick. At that time, the maximum retail price for gasoline in New Brunswick was $1.237, while prices in Nova Scotia were not allowed to exceed $1.117, and prices in the Halifax area were capped at $1.10. Similarly, in March 2024, the maximum price for regular self-serve gasoline in New Brunswick increased to 164.0 cents per litre, while in Nova Scotia, the price increased to 154.4 cents per litre in Zone 1 (including Halifax) and 156.4 cents per litre in Cape Breton. More recently, in June 2024, gas prices dropped in New Brunswick while they increased in Nova Scotia, with the minimum price in the Halifax area rising to 172.1 cents per litre.

Gas prices are affected by supply and demand

Gas prices are largely determined by the economic principle of supply and demand. When supply decreases and demand remains constant, prices tend to increase. Conversely, when supply increases and demand stays the same, prices tend to decrease.

In the context of gas, supply refers to the amount of gasoline available to meet demand. Demand, in this case, is influenced by the need for gasoline and other petroleum products in the United States and worldwide. Strong and increasing demand can put pressure on available supplies, leading to higher prices.

Gas prices can change rapidly due to various factors. For instance, disruptions in crude oil supplies, refinery operations, or gasoline pipeline deliveries can cause sudden shifts in prices. Additionally, seasonal changes in demand and gasoline specifications can also impact prices. For example, gasoline sold in the summer must be less prone to evaporation during warm weather, leading to higher costs for refiners.

In New Brunswick, the Energy and Utilities Board (EUB) resets pump prices weekly, typically on Thursdays. This regularity helps to stabilize prices and prevent drastic fluctuations. However, external factors, such as market trends and geopolitical events, can still influence gas prices between these resets.

While supply and demand are the primary drivers of gas prices, other factors also come into play. The cost of acquiring and refining crude oil, distribution and marketing expenses, and taxes all contribute to the final price at the pump. Geopolitical events and economic growth can also impact oil markets, causing fluctuations in gas prices.

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