Categories: CanadaInternational

UPDATE: Gas prices in New Brunswick hit $2

Gas prices in New Brunswick have risen above two dollars per litre for the first time since May, coinciding with the province’s inflation rate remaining the second highest in Canada.

The New Brunswick Energy and Utilities Board (NEUB) raised the maximum price for regular unleaded gasoline to 201.8 cents per litre on Saturday, following a mid‑week adjustment triggered by the board’s interrupter clause. The clause allows the board to change the maximum price immediately if market prices shift significantly. The previous maximum, set on Friday, was 194.6 cents per litre.

Regular unleaded gasoline in New Brunswick reached 202.1 cents per litre on May 15, the last time the price exceeded $2. The most recent spike follows a rise in the New York Harbour Barge Price, a benchmark used by the province that reflects oil prices near the Atlantic coast. The price increase is attributed largely to higher global oil costs, including tensions in the Strait of Hormuz.

Alongside the rise in gasoline, the maximum price for diesel increased by about 14 cents, from 259 cents to 273 cents per litre. Furnace oil also saw a 14‑cent rise, from 252 cents to 266 cents per litre.

Statistics Canada released new inflation data on Monday, showing that New Brunswick’s year‑over‑year inflation rate was 4.6% in August, unchanged from July. This rate is the second highest in the country, surpassed only by Nova Scotia’s 5.1% inflation. Across Canada, the national inflation rate remained steady at 3.0% in August.

Nationally, gasoline prices rose 22.8% year‑over‑year in August, down from a 25.7% increase in July. However, fuel oil and other fuels in Atlantic Canada increased 43.7% year‑over‑year in August, compared with 29.5% in July, contributing to higher inflation in the region.

Other price changes in August included a 26.1% rise in travel tours and a 2.8% increase in rent, which offset the slower gasoline price growth outside Atlantic Canada. Food prices, however, fell below the overall inflation rate for the first time since July 2024, with grocery store food up 2.8% year‑over‑year.

Economists predict that inflation could rise further in the coming months due to persistent global energy prices. CIBC economist Andrew Grantham noted that the Bank of Canada is likely to keep interest rates unchanged until late October, while Desjardins economist LJ Valencia expects the central bank to delay rate hikes until early 2027, citing ongoing energy and tariff pressures.

Winter gasoline blends are expected to arrive in September, potentially easing prices. Historically, gasoline prices tend to fall during colder months as demand decreases.

August inflation rates by province:

  • Canada overall: 3.0%
  • Nova Scotia: 5.1%
  • New Brunswick: 4.6%
  • Prince Edward Island: 4.4%
  • Manitoba: 4.4%
  • Newfoundland and Labrador: 4.3%
  • Alberta: 3.8%
  • Saskatchewan: 3.5%
  • Quebec: 3.1%
  • British Columbia: 3.0%
  • Ontario: 2.4%

Article and image source: tj.news

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