Acts and Regulations

2006-41 - General

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Current to 16 June 2023
NEW BRUNSWICK
REGULATION 2006-41
under the
Petroleum Products Pricing Act
(O.C. 2006-240)
Filed June 27, 2006
Under section 33 of the Petroleum Products Pricing Act, the Lieutenant-Governor in Council makes the following Regulation:
Citation
1This Regulation may be cited as the General Regulation - Petroleum Products Pricing Act.
Definitions
2The following definitions apply in this Regulation.
“Act” means the Petroleum Products Pricing Act. (Loi)
“Argus” means the report entitled Argus Americas Biofuels or any other report published by Argus Media that the Board considers relevant.(Argus)
“base product” means(produit de base)
(a) a petroleum product or type of petroleum product set out in Schedule A or A.1 for which a price is indicated by a petroleum product price report selected by the Board, or
(b) a petroleum product or type of petroleum product referred to in subsection 4.1(1).
“Bloomberg” Repealed: 2022, c.55, s.2
“daily reference price” means (prix de référence quotidien)
(a) with respect to conventional gasoline, the mid price for the corresponding base product;
(b) with respect to E10 gasoline, the sum of the mid prices or the daily product prices, as the case may be, for each of its base products, multiplied by the relevant percentage set out in Schedule A for each base product;
(c) with respect to ultra-low sulphur diesel fuel or furnace oil, the sum of the mid prices or the daily product prices, as the case may be, for each of its base products set out in Schedule A.1 or referred to in subsection 4.1(1), as the case may be, multiplied by the relevant percentage determined by the Board for each base product.
“OPIS” means a report published by the Oil Price Information Service company. (OPIS)
“petroleum product price report” means an Argus, Platts, OPIS or any other report the Board considers relevant.(rapport sur les prix de produits pétroliers)
“Platts” means the report entitled Platts US Marketscan or the report entitled Platts Biofuelscan, as the case may be.(Platts)
“weekly reference price” , with respect to conventional gasoline, E10 gasoline, ultra-low sulphur diesel fuel or furnace oil, means the average of its daily reference prices for the seven-day period excluding the weekend since the benchmark price of that petroleum product was last published.(prix de référence hebdomadaire)
2009-99; 2011-9; 2013-74; 2015-61; 2022, c.55, s.2; 2022-90
Periodic setting of maximum prices
3(1)Except where otherwise provided, the Board shall set maximum wholesale and retail prices for petroleum products to take effect every Friday.
3(2)Subject to section 6, when Thursday is a holiday, the Board shall set the maximum wholesale and retail prices to take effect the following Saturday.
3(3)Despite subsection (2), when Boxing Day falls on a Friday, the Board shall set the maximum wholesale and retail prices to take effect on Thursday, Christmas Day.
2007-27; 2022, c.55, s.2
Benchmark price - periodic determination
4(1)Subject to section 6, the benchmark price for each type of petroleum product shall be determined as follows:
(a) for regular grade gasoline,
(i) subject to subparagraph (ii), the higher of the following:
(A) the weekly reference price for conventional gasoline;
(B) the weekly reference price for E10 gasoline;
(ii) if the weekly reference price for conventional gasoline is the same as the weekly reference price for E10 gasoline, that price;
(b) for mid-grade gasoline - one-half of the weekly reference price for regular grade gasoline plus one half of the weekly benchmark price for premium grade gasoline;
(c) for premium grade gasoline - the benchmark price established in accordance with subsection 10(2.1) of the Act;
(d) for ultra-low sulphur diesel fuel - the weekly reference price for ultra-low sulphur diesel fuel plus 0.035 cents per litre;
(e) for furnace oil - the weekly reference price for furnace oil;
(f) for propane - the weekly average price, published daily, for the corresponding base product for any given seven-day period excluding the weekend.
4(2)The price data for a product referred to in paragraph (a) of the definition “base product” in section 2 for any day on which no price data necessary to determine a benchmark price is published shall be deemed to be the price data most recently published.
4(2.1)Repealed: 2011-9
4(3)The daily average exchange rates published by the Bank of Canada shall be used for the purpose of converting United States currency to Canadian currency.
4(4)The benchmark price shall be expressed in Canadian cents per litre or other unit of measurement appropriate to the petroleum product.
2007-27; 2009-99; 2011-9; 2013-74; 2015-61; 2022, c.55, s.2
Base products
2015-61
4.1(1)If a petroleum product or type of petroleum product is not set out in Schedule A or A.1, the Board may determine that the product is a base product for the purposes of this Regulation.
4.1(2)Repealed: 2022-90
2015-61; 2022-90
Interruption of periodic adjustment of benchmark price
5Repealed: 2007-27
2007-27
Procedure following adjustment of benchmark price
2011-9; 2022, c.55, s.2
6(1)The Board shall notify wholesalers of any adjustment to the benchmark price for each type of heating fuel or motor fuel pursuant to section 11 of the Act as soon as circumstances permit and shall set the maximum wholesale and retail price of each to take effect as of 12:01 a.m. of the day following notification.
6(2)After making an adjustment referred to in subsection (1), the Board shall determine the benchmark price for that type of heating fuel or motor fuel in accordance with section 4 on the day it would normally be determined but may exclude the price data for the corresponding base product or base products for any day prior to the adjustment being made.
2007-27; 2009-99; 2011-9; 2015-61; 2022, c.55, s.2
Initial setting of the total allowed margin
7(1)For the purpose of setting the total allowed margin for each type of heating fuel and motor fuel, the Minister shall consider
(a) the historical margin between prices for the base product and the prices that have been charged to consumers within the province for the type of heating fuel or motor fuel, excluding applicable taxation and estimated delivery costs, for the period of time that the Minister considers appropriate;
(b) whether the historical margins identified as a result of paragraph (a) are reasonable, taking into account
(i) the costs of transporting heating fuel or motor fuel from New York Harbour or, in the case of propane, from Sarnia to the province,
(ii) volume of sales,
(iii) storage costs, and
(iv) inventory turnover rates;
(c) that the maximum retail price only sets a maximum price for the sale of heating fuel and motor fuel by retailers to consumers and should, to the extent possible, allow competition between retailers; and
(d) the other considerations that the Minister considers relevant.
7(2)The total allowed margin shall be expressed in Canadian cents per litre or other unit of measurement appropriate to the petroleum product.
Initial setting of the maximum wholesale margin
8(1)After the total allowed margin for a type of heating fuel or motor fuel has been established, the Minister shall set the maximum wholesale margin for that type of heating fuel or motor fuel by taking into consideration
(a) the historical margin between the prices for the base product and the prices that have been charged to retailers within the province of the type of heating fuel or motor fuel, excluding applicable taxes and estimated delivery costs, for the period the Minister considers appropriate;
(b) whether the historical margins identified as a result of paragraph (a) are reasonable, taking into account
(i) the costs of transporting heating fuel or motor fuel from New York Harbour or, in the case of propane, from Sarnia to the province,
(ii) volume of sales,
(iii) storage costs, and
(iv) inventory turnover rates,
(c) that the maximum wholesale price only sets a maximum price for the sale of heating fuel and motor fuel by wholesalers to retailers and should, to the extent possible, allow competition between wholesalers; and
(d) the other considerations that the Minister considers relevant.
8(2)The allowed wholesale margin shall be expressed in Canadian cents per litre or other unit of measurement appropriate to the petroleum product.
Application for adjustment of maximum margins
9(1)Where an application has been made to the Board under section 12 of the Act for a change in the maximum margin that may be charged by a wholesaler or retailer, the Board shall consider the following:
(a) whether, since the maximum margin was last set, an adjustment would be justified as a result of a change to
(i) the costs of transporting heating fuel or motor fuel from New York Harbor or, in the case of propane, from Sarnia to the province,
(ii) volume of sales,
(iii) storage costs,
(iv) inventory turnover rates, and
(v) applicable levies and insurance costs; and
(b) any other factors that the Board considers relevant.
9(2)Where the Board adjusts a maximum margin, it shall inform wholesalers and retailers of the adjustment.
9(3)The new maximum margin shall come into effect on a Friday on which the maximum wholesale and retail prices would normally come into effect under section 3.
2022, c.55, s.2
Initial setting of maximum delivery costs
10(1)When setting the initial maximum delivery costs allowed in respect of the delivery of heating fuel or motor fuel, the Minister shall take into consideration
(a) the delivery costs incurred by retailers for the delivery of heating fuel for the period of time the Minister considers relevant, and
(b) the delivery costs incurred by wholesalers and charged to retailers in the case of motor fuel for the period of time the Minister considers relevant.
10(2)The maximum delivery costs shall be expressed in Canadian cents per litre or other unit of measurement appropriate to the petroleum product.
Adjustment of maximum delivery costs
11Where an application has been made to the Board to adjust the maximum delivery costs that may be charged by a wholesaler or retailer under section 13 of the Act, the Board shall consider
(a) fuel costs,
(b) insurance costs,
(c) capital costs,
(d) volume of sales,
(e) in the case of an application for delivery costs that are particular to the applicant, the cost effectiveness of the applicant’s operation, and
(f) any other factors that the Board considers relevant.
Review by Board
12Where the Board conducts a review under section 14 of the Act, the Board shall consider the same factors that apply under section 9, in the case of a review of maximum margins, and under section 11, in the case of a review of maximum delivery costs.
Applicable taxation
13The applicable taxation shall be the amount of taxation payable by a wholesaler or retailer in respect of a type of heating fuel or motor fuel and shall be expressed in Canadian cents per litre or other unit of measurement appropriate to the petroleum product.
Fuel charges
2019, c.3, s.4
13.1The fuel charges payable to the Crown in right of Canada shall be the amount of those fuel charges payable by a wholesaler or retailer in respect of a type of heating fuel or motor fuel and shall be expressed in Canadian cents per litre or other unit of measurement appropriate to the petroleum product.
2019, c.3, s.4; 2022, c.55, s.2; 2023, c.17, s.193
Cost of carbon adjustor
2022, c.55, s.2
13.2(1)In setting the cost of carbon adjustor, the Board may consider any relevant information, including
(a) written submissions from primary suppliers, wholesalers, retailers and the Public Intervener for the Energy Sector regarding the financial and administrative burdens associated with the application of the Clean Fuel Regulations (Canada) or any other regulatory instrument made under the Canadian Environmental Protection Act, 1999 (Canada) and the Environmental Violations Administrative Monetary Penalties Act (Canada),
(b) conclusions drawn from reports from compliance credit markets under the Clean Fuel Regulations (Canada),
(c) the cost of renewable fuel,
(d) wholesaler and retailer costs, including the purchase of liquid petroleum products at rack prices, and
(e) any other information the Board considers relevant in relation to the application of the Clean Fuel Regulations (Canada) or any other regulatory instrument made under the Canadian Environmental Protection Act, 1999 (Canada) and the Environmental Violations Administrative Monetary Penalties Act (Canada).
13.2(2)The cost of carbon adjustor shall be expressed in Canadian cents per litre or other unit of measurement appropriate to the petroleum product.
2022, c.55, s.2
Market adjustor
2022, c.55, s.2
13.3(1)In setting the market adjustor, the Board may consider any relevant information, including
(a) transportation costs, volume of sales, storage costs and inventory turnover rates for a type of petroleum product,
(b) applicable levies and insurance costs,
(c) the market conditions that led to the price discrepancy,
(d) the actual or expected duration of the market conditions that led to the price discrepancy,
(e) the impact the price discrepancy has on the maximum margin for a wholesaler and the maximum margin for a retailer, and
(f) any other information the Board considers relevant.
13.3(2)The market adjustor shall be expressed in Canadian cents per litre or other unit of measurement appropriate to the petroleum product and may, given its temporary nature, be expressed as a positive, negative or zero amount.
2022, c.55, s.2
Levies
14(1)For the purposes of section 26 of the Act, a wholesaler shall pay to the Board a levy of 0.0375 cent per litre of gasoline and motive fuel sold by the wholesaler in the 12 month period ending on the thirty-first day of October preceding the calendar year for which the licence to the wholesaler under the Gasoline and Motive Fuel Tax Act is issued.
14(2)The levy shall be paid at the same time that the wholesaler is required to pay the fee for a wholesaler’s licence under the Gasoline and Motive Fuel Tax Act.
2013, c.28, s.19
Display of prices
15(1)A retailer shall display the prices for types of motor fuel sold or offered for sale by the retailer on one or more legible signs that are placed in a conspicuous location at or near the entrance to the premises and that are clearly visible to consumers.
15(2)Numbers on signs required under subsection (1) shall not be less than twenty centimetres in height and shall contrast in colour with and be clearly visible against the background.
15(3)This section does not apply to a cooperative incorporated or continued under the Cooperatives Act or to which that Act applies which has by properly enacted by-law restricted the sale of motor fuel at its retail outlet to members of the cooperative.
2019, c.24, s.193
Posting of prices by Board
16The Board shall ensure that the maximum retail and wholesale prices and the maximum delivery costs that are applicable with respect to any period are posted on its Website or are otherwise made readily available to consumers no later than 9:00 a.m. on the day that those prices or delivery costs take effect.
Information from wholesalers and retailers
17(1)Every wholesaler and retailer shall provide the Board, in writing, with
(a) the name of an individual and his or her position title, designated by the wholesaler or retailer, to receive all notices, decisions, requests, correspondence and other communications from the Board on behalf of that wholesaler or retailer,
(a.1) a statement as to whether or not, in the case of a retailer, the retailer contracts with a third party to deliver motor fuel from a wholesaler to the retailer or picks up the motor fuel itself from a wholesaler, and
(b) contact information for the wholesaler or retailer, including where possible
(i) a mailing address,
(ii) a telephone number,
(iii) a facsimile number, and
(iv) an electronic mail address.
17(1.1)A retailer shall provide the information under paragraph (1)(a.1) to the Board within 30 days after the commencement of this subsection.
17(2)A person who becomes a wholesaler or retailer after these regulations come into force shall provide the Board with the information set out in subsection (1) within 30 days after becoming a wholesaler or retailer.
17(3)A wholesaler or retailer shall inform the Board of any changes to the contact information submitted under subsection (1) or (2) without delay.
2007-48
Notification of retailers by Board
2007-48
17.1Retailers who provide information to the Board under paragraph 17(1)(a.1) shall be notified by the Board under subsections 3(3) and 5(3) of the Act.
2007-48
Reports by wholesaler
2007-27
18(1)A wholesaler shall submit written reports to the Board on a form provided by the Board containing the following information:
(a) the names of each retailer, the location of each outlet of the retailer and the type of retailer to whom motor fuels or heating fuels are sold or held for reselling to consumers;
(b) the volumes of each product sold to each retailer by outlet totaled in litres on a monthly basis;
(c) the delivery costs charged to each retailer referred to in paragraph (a);
(d) such other information the Board may require with respect to the sale of petroleum products.
18(2)The reports shall be submitted
(a) for each calendar year and not later than the thirtieth day of January of the following year, and
(b) upon request of the Board for such period of time and within the period of time specified by the Board.
2007-27
Reports by retailer - motor fuel
2007-27
19(1)A retailer shall submit written reports for retail motor fuel outlets to the Board on a form provided by the Board containing the following:
(a) the name of the retailer and the location and type of each retail outlet at which motor fuels are sold to consumers;
(b) the type and capacity in litres of each storage tank at each outlet by type and grade of product;
(c) the volumes of each type or grade of fuel sold totaled in litres on a monthly basis;
(d) the volume of each product sold through self-serve pumps and through full service pumps totaled in litres on a monthly basis;
(e) the delivery costs paid by the retailer to the wholesaler;
(f) such other information the Board may require with respect to the sale of motor fuel products.
19(2)The reports shall be submitted
(a) for each calendar year and not later than the thirtieth day of January of the following year, and
(b) upon request of the Board for such period of time and within the period of time specified by the Board.
2007-27; 2009-99
Reports by retailer - heating fuel
2007-27
20(1)A retailer who sells heating fuel shall submit written reports to the Board on a form provided by the Board containing the following information:
(a) the name of the retailer and the retailer’s location;
(b) a description of the method by which the retailer acquired heating fuel from a wholesaler;
(c) the name of each wholesaler and volumes purchased from each by product type and volume in litres on a monthly basis;
(d) the volumes of each type or grade of fuel sold totaled in litres on a monthly basis;
(e) such other information the Board may require with respect to the sale of heating fuel products.
20(2)The reports shall be submitted
(a) for each calendar year and not later than the thirtieth day of January of the following year, and
(b) upon request of the Board for such period of time and within the period of time specified by the Board.
2007-27; 2009-99
Exemption
2007-48
20.1A retailer who sells motor fuel at any of the following outlets is exempt from the Act but only with respect to motor fuel sold at the outlet:
(a) an outlet located at a marina;
(b) an outlet located at a hunting or fishing lodge;
(c) an outlet operated by a snowmobile club for the purpose of fuelling snowmobiles during the winter season.
2007-48; 2020, c.16, s.10
Commencement
21This Regulation comes into force on July 1, 2006.
SCHEDULE A
Petroleum Products
Base products
Regular grade gasoline
Conventional gasoline
Unleaded 87
E10 gasoline
Ethanol
10%
CBOB
90%
Propane
OPIS – Propane (Sarnia)
2006-82; 2007-27; 2009-99; 2011-9; 2013-74; 2015-61; 2022, c.55, s.2
SCHEDULE A.1
Petroleum Products
Base products
Motor fuel – ultra-low sulphur diesel
ULS Kero
ULSD
Chicago fob B100
Heating fuel – furnace oil
ULS Kero
ULSD
2007-27; 2013-74; 2014-130; 2015-61; 2022, c.55, s.2; 2022-90
SCHEDULE B
Repealed: 2007-27
2006-82; 2007-27
SCHEDULE C
Repealed: 2011-9
2006-82; 2007-27; 2009-17; 2009-99; 2011-9
N.B. This Regulation is consolidated to June 16, 2023.