Atlantic premiers want federal government to postpone new clean fuel rules

The four premiers from Atlantic Canada are asking the federal government to delay implementation of its new clean fuel regulations.

The provincial leaders said in a news release Thursday that they want a pause until a plan can be developed to address what they call "the disproportionate impact of the regulations on Atlantic Canadians," where many goods needed by consumers and businesses have to be trucked in.

"I think we're unique here for a number of reasons. First of all, we don't have a whole lot of options in terms of we have one major refinery that produces most of the fuel that we use for the region," P.E.I. Premier Dennis King told CBC's Power & Politics on Thursday.

The Council of Atlantic Premiers met virtually Wednesday with Steven Guilbeault, the federal minister of environment and climate change, to discuss the issue.

Atlantic premiers urge the federal government to delay new clean fuel regulations

1 year ago

Duration 7:26

King, who currently chairs the council,had voiced his concerns about the timing of the new regulations this week in the Prince Edward Island legislature. He said inflation is hitting Atlantic Canadians hard, and the prospect of two federal initiativesraising the price of gasoline this year is not a pleasant one.

Both the Clean Fuel Regulations and the carbon tax increase are scheduled to come into effect on July 1.

King said home heating fuel alone is slated to increase 17 cents per litre on P.E.I. on July 1.

"When you look at it from the Atlantic perspective, we've had the highest cost of living, the inflationary pressureshave been measured higher here than most other places in the country," he said.

"So we think, well we know, that consumers here have been hit hard with inflation and we can't take any more cost at the pump, and to have a double whammy like this will impact our economy ... and that's going to be difficult for Islanders and for Atlantic Candians to absorb."

The premiers are concerned about the impact of the regulations on fuel prices and fuel supplies. They also worry it will increase the costs of other goods imported to the region.

A spokesperson forGuilbeaultsent a statement reacting to the premiers' call later in the day.

It said in part that refineries handling petroleum products in Atlantic Canada will face"very small, incremental costs" as a result of the new regulations, and should be able to cover those costs out of their profit margins while making changes to reduce their environmental footprint.

"Between 2019 and 2022, the margins of refineries in Atlantic Canada went from just over 10 cents per litre to almost 50 cents per litre," the statement said.

"There is simply no reason that they need to push costs onto consumers on July 1."