Fri. Mar 1st, 2024

Irving will be able to pass on the co&ucirc ;ts of the Regulation on clean fuels to its customers

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The Irving Oil refinery in Saint John, New Brunswick.


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The Prince Edward Island Regulatory and Appeals Commission (CRAIPE) has ruled that Irving Oil can continue to pass on the costs of the Clean Fuels Regulations, implemented by Ottawa, to its customers.

The measure, which came into force this summer, aims to reduce carbon emissions linked to the production and distribution of oil and diesel.< /p>

Since July, expenses linked to the implementation of the regulation have been included in the sale prices of fuel.

The Clean Fuels Regulations set emission targets and establish financial rewards for oil companies that achieve them. Penalties are also provided for companies that do not achieve the objectives of the measure.

At the beginning of December, CRAIPE ruled that expenses made by oil companies to comply with these standards will be integrated into its price-setting system. However, they are not detailed in the pricing published on its website, but rather included in the retail price.

This allows costs to be recovered linked to compliance with the Fossil Fuel Regulations without the implementation of a clean fuel cost adjustment, indicates CRAIPE in its decision.

LoadingIntensive negotiation between the government and the FAE

ELSE ON INFO: Intensive negotiation between the government and the FAE

Irving Oil is the exclusive supplier of products oil tankers on Prince Edward Island.

According to a consultant hired by the commission, consumers could pay a surcharge at the pump of four cents per liter because of these changes.

According to the federal Minister of the Environment, Steven Guilbeault, these costs should not be immediately passed on to consumers.

In a letter sent to CRAIPE, he warned that asking consumers for immediate increases to reflect estimated costs under a worst-case scenario could lead a company to later choose a less expensive option, allowing it to pocket the revenue The Clean Fuels Regulations will not necessarily lead to significant cost increases for refiners , particularly in the short term. These will certainly not be as important as those put forward by Irving, specifies Mr. Guilbeault.

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