Conservative Leader Pierre Poilievre is set to advocate for the elimination of what he refers to as "carbon tax 2.0" when Parliament reconvenes. This term refers to the clean fuel regulations that have increased gas prices by 8.77 cents per liter in New Brunswick.

During a visit to Charlottetown on Wednesday, Poilievre emphasized his commitment to this issue as part of his East Coast tour. He claimed to have successfully pressured the federal Liberals to abolish the consumer carbon tax and is now focusing on the clean fuel regulations in Ottawa next month.

"We are making it a priority to boost take-home pay and reverse the Liberal cost of living crisis by opposing Mark Carney’s carbon tax 2.0," Poilievre stated. He added, "We want to axe all carbon taxes for good, for real, for everyone, forever. We want to increase your purchasing power because we know it’s not just gas and diesel; everything that comes in a truck will be more expensive when you tax fuel."

The federal clean fuel regulations, which took effect in July 2023, mandate that gasoline suppliers gradually reduce the carbon intensity of the fuels they produce and sell in Canada. However, in New Brunswick, the provincial government, led by Premier Blaine Higgs, passed legislation allowing these costs to be transferred to consumers. This change modified the price-setting formula for gasoline and other liquid fuels to include a "cost of carbon adjustor" in the province’s Energy and Utilities Board formula.

This adjustor fluctuates based on the carbon credit market, which has seen recent increases, resulting in the current additional charge of 8.77 cents per liter for regular unleaded gas in New Brunswick.

The government of Susan Holt has postponed its election promise to eliminate the carbon adjustor. In June, it amended its bill to prevent the costs associated with federal clean fuel regulations from being passed on to consumers, a burden that was intended to fall on refiners, particularly Irving Oil. This delay allows the New Brunswick Energy and Utilities Board to conduct two reviews, one of which may permit retailers and wholesalers to request larger profit margins, potentially leading to further increases in gas prices.

The Holt government is also considering a broader review of how gas prices are determined in New Brunswick, which could result in the complete deregulation of gas prices in the province.