Irving Oil response to New Brunswick Energy and Utilities Board decision
Today’s decision of the New Brunswick Energy and Utilities Board to deny the request for an interim and immediate increase in the wholesale price is disappointing.
The issue is not limited to New Brunswick. Nova Scotia and Newfoundland and Labrador both have regulated markets, both had the same issue, both took action and adjusted prices in recent months.
The facts presented speak for themselves and we had hoped that the outcome of today’s decision would have been different.
Current market regulations were put in place 15 to 20 years ago. They do not respond to the fundamentals of supply and demand. They do not react to market conditions and they especially do not respond to the challenges our industry is currently facing during COVID-19.
Our industry has experienced severe impacts as a result of the COVID-19 pandemic. Demand for fuel products has dropped off significantly; to date, more than 20 refineries have announced closures or significant changes. Many more have cancelled major projects and layoffs have been widespread, including, unfortunately, at Irving Oil.
Outdated regulations that set a price of products without covering costs do not make sense. Our business cannot continue to absorb these additional costs in New Brunswick. It is not sustainable.
We know the challenges we face as a result of the COVID-19 pandemic are unfortunately far from over and we are very disappointed that the Board and this process did not understand, recognize or consider the seriousness or urgency of this request.
We are proud of the commitment the people of Irving Oil make to this province every day.