Higgs pitches deferring carbon tax to ease skyrocketing pump prices

Premier Blaine Higgs says he wants to defer the carbon tax by three months to bring down high gas prices in the province.

The federal government sets the tax rates, so any changes to it require federal approval.

The current carbon tax rate on gas is 8.8 cents per litre. It's scheduled to rise to 11 cents per litre on April 1.

Deferring the carbon tax would bring down prices by 11 cents, Higgs told CBC News. He'll be meeting with his caucus later this week to discuss the deferral. 

Gasoline prices have jumped twice in New Brunswick over the past week, causing some stations to sell fuel for up to $1.82 per litre for regular self-service gasoline and $2.00 per litre for self-service diesel.

Higgs said he'd like to do something to ease prices at the pumps, though he emphasized New Brunswick isn't in the same position as provinces like Alberta, which announced it will pause collection of provincial fuel tax, starting April 1, to help consumers grapple with rising gas prices. 

"They are making this up many times over on the increased price of crude oil and their ability to get revenues there," Higgs said.

He didn't say whether economic chaos over the past few days had otherwise impacted the upcoming provincial budget, set to be brought in on March 22. The provincial surplus of $444 million from the past year also isn't a solution, Higgs said. 

The budget will use revenue streams to address many of the concerns people have about issues like high housing costs and the health-care system, Higgs said.

Jean-Marc Picard, executive director of the Atlantic Provinces Trucking Association, said the cost of fuel, which jumped twice within five days last week, is a growing concern for his members.

"It's concerning for all types of companies, but for smaller companies I think it's a bit more impactful just because of the way their business is set up," Picard said.

"If you only have a handful of trucks and you put $2,000 of diesel in, and you do your deliveries, you probably won't get paid for 30 or 45 days for those deliveries, so you have to be really financially sound and you have to be solid."

Businesses relying on trucking services could see higher delivery costs in the short term, Picard said, and if the higher gas prices persist, those extra costs could eventually make their way to the end consumer. 

"If it's short-lived we're probably not going to see that, but if it stays that way for a while we're probably going to see some price hikes for sure."