nova scotia energy board changes clean fuel pricing formula, raising pump prices
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the nova scotia energy board has issued an interim order changing how it calculates the province's clean fuel adjuster while a broader review is conducted.
shana grey
/
brunswick news
nova scotia drivers will see gasoline and diesel prices climb higher friday after the nova scotia energy board made changes to the way it calculates a regulated surcharge to cover the cost of complying with clean fuel rules.
in an interim order issued thursday, the board changed the methodology used to set the province’s clean fuel adjuster, a charge built into the cost of gas that allows suppliers to cover costs associated with the federal fuel regulations.
according to a news release issued alongside the order, the changes will take effect with the weekly fuel adjustment friday at 12:01 a.m. and is to remain in place while the board opens a broader investigation into whether the current method is “just and reasonable.”
what changed?
currently, the clean fuel adjuster adds 9.04 cents per litre to the price of gasoline and 10.07 cents per litre to diesel.
under the interim order, this week’s adjustment is expected to add an additional 3.2 cents per litre to gasoline and 3.5 cents per litre to diesel, before hst. the amount could vary from week to week depending on market conditions and the cost of complying with regulations.
the federal government’s regulations require fuel suppliers to reduce the carbon intensity of the fuel they sell or purchase compliance credits if they fall short.
why the change?
the order follows a june 22 application filed by the canadian fuel association asking the board to review the methodology adopted last year and to implement a temporary order. in its application, the association said the current adjuster amount no longer represents the costs suppliers deal with in order to comply with the federal regulations.
the application pointed to testimony from jason parent of signal energy consulting, whose recommendations the board looked to when it approved the methodology during a review in 2025.
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during a february hearing before the new brunswick energy and utilities board, parent said he would no longer make the same recommendation for nova scotia.
according to the application, parent said that the federal credit clearance mechanism was expected to be able to provide the lowest cost compliance for fuel suppliers but that “practically, i don’t think it has functioned that way.”
in the decision, the board said it was satisfied that an interim change was required while the review is conducted. it also warned in the release that “a prolonged disconnect between the amount of the adjuster and actual costs can lead to a shortage of gas or diesel in nova scotia if suppliers ultimately decide not to sell their product.”
what happens next
the board last reviewed the clean fuel adjuster in 2025, approving methodology that went into place jan. 9. at the time, it concluded that the approach would allow suppliers to recover compliance costs while keeping consumers protected by capping the maximum credit price used to calculate the adjuster.
its investigation is to include a preliminary report from independent consultants followed by a hearing where parties may submit evidence and question the report’s findings.
the interim methodology will remain in place until the investigation concludes and a final decision is issued by the board.
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