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Petroleum Products Pricing Regulations
Petroleum Products Pricing Act
O.I.C. 2009-399 (effective October 1, 2009), N.S. Reg. 286/2009
amended to O.I.C. 2023-149 (effective June 2, 2023), N.S. Reg. 95/2023
Table of Contents
Please note: this table of contents is provided for convenience of reference and does not form part of the regulations.
Click here to go to the text of the regulations.
Application of Act and regulations
Regulations prevail over contract
Retailer may opt out of regulations
Retailer remains responsible for debts owed under contract
Prescribed minimum and maximum retail price[s] still apply
Must charge prices for zone where point of sale located
Promotions to reduce price at time of sale
Reducing price if retailer runs out of Grade 1—Regular gasoline
Reported product price and spot market
Maximum and minimum retail mark-up
Maximum and minimum retail price[s]
Informing wholesalers, wholesaler-retailers and retailers of prices
No disclosure of price before in effect
Investigations by Board to ensure matters just and reasonable
Interim order in emergency situation
Policies, directives and bulletins of Board
When consumer advocate appointed
Powers and duties of consumer advocate
Fees and expenses of consumer advocate
Inspection of records by Board
Transitional–retailers remain opted out of regulations or not opted out of regulations
Schedule 1—Calculation of Carbon Price for Gasoline and Ultra-Low-Sulfur Diesel
Formulas for Calculating Carbon Price for Gasoline
Formula 1.0—total carbon price per litre of gasoline
Formula 1.1—settlement price adjustment
Formula 1.2—adjustment for months between auctions
Formulas for Calculating Carbon Price for Ultra-Low-Sulfur Diesel
Formula 2.0—total carbon price per litre of ultra-low-sulfur diesel oil
1 These regulations may be cited as the Petroleum Products Pricing Regulations.
2 The purpose of these regulations is to ensure just and reasonable prices for specified petroleum products, taking into consideration all of the following objectives:
(a) preserving availability of specified petroleum products in rural areas;
(b) stabilizing prices of specified petroleum products;
(c) minimizing the variances in prices of specified petroleum products across the Province.
3 In these regulations,
“Act” means the Petroleum Products Pricing Act;
“agent” means an agent as defined in clause 5(a) of the Revenue Act Regulations made under the Revenue Act;
“Argus Media” means Argus US Products produced by Argus Media Group;
“benchmark price” means the price prescribed by the Board under Section 16;
“Bloombergs Guide” means the Bloombergs Oil Buyers’ Guide produced by Bloomberg L.P.;
“Board” means the Nova Scotia Utility and Review Board established under the Utility and Review Board Act;
“CBOB” means conventional blendstock for oxygenate blending;
“clean fuel adjustor” means the result of a monetary adjustment intended to mitigate for wholesalers and retailers the effect of costs incurred during a given compliance period by a primary supplier of liquid petroleum products to comply with 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);
“gasoline” means any of the following grades of gasoline, as differentiated by the antiknock index and set out in the Canadian General Standards Board standard CAN/CGSB-3.5-2021, Automotive gasoline, as amended, and the Canadian General Standards Board standard CAN/CGSB-3.511-2021, Oxygenated automotive gasoline containing ethanol, as amended:
(i) Grade 1—Regular,
(ii) Grade 2—Mid-grade,
(iii) Grade 3—Premium;
“Oil Price Information Service” means the OPIS Full Day Close Spots Report produced by Oil Price Information Service, an IHS Markit company;
“Platts Report” means the Platts Oilgram Price Report/US Marketscan produced by Platts, a division of The McGraw-Hill Companies;
“point of sale” means
(i) with respect to the sale of petroleum products by a wholesaler or wholesaler-retailer to a retailer, the location where the delivery of the product to the retailer takes place, and
(ii) with respect to the sale of petroleum products by a retailer to a consumer, the location where the product is delivered to the consumer;
“promotion” means any item, service, or saving opportunity with an implied value extended to a retail consumer in order to entice the consumer to purchase petroleum products of a particular brand;
“reported product price” for a type of petroleum product means the reported product price determined in accordance with Section 15C;
“spot market” means a market
(i) in which the petroleum product is paid for and immediately delivered at the point of sale, and
(ii) for which pricing information is available through a reporting source;
“spot market price” does not include rack prices;
“wholesaler-retailer” means a wholesaler who also sells or keeps a petroleum product for sale directly to consumers;
“winter blending” means the process used to ensure satisfactory fuel operability in cold temperature environments.
Application of Act and regulations
4 (1) Except as otherwise provided in this Section, the following types of petroleum products are subject to these regulations:
(a) gasoline;
(b) ultra-low-sulfur diesel oil.
(2) A petroleum product of a type that is not listed in subsection (1) is exempt from these regulations and from Sections 4 to 7 of the Act.
(3) All of the following petroleum products are exempt from these regulations and from Sections 4 to 7 of the Act:
(a) aviation gasoline;
(b) except as provided in subsection (4), any petroleum product sold or purchased for use as fuel in a watercraft or an aircraft equipped to float on water;
(c) except as provided in subsection (4), any petroleum product sold or purchased for use as fuel in an off-highway vehicle as defined in clause 2(d) of the Off-highway Vehicles Act;
(d) gasoline and ultra-low-sulfur diesel oil bought by a consumer through a commercial bulk volume contract for 5000 L or more;
(e) gasoline and ultra-low-sulfur diesel oil sold or purchased at a restricted access outlet as defined in clause 2(p) of the Motive Fuel and Fuel Oil Approval Regulations made under the Environment Act for use as fuel in a vehicle being operated for the carriage of persons or property for commercial gain;
(f) any petroleum product that is exempt from tax under Section 22 of the Revenue Act Regulations made under the Revenue Act.
(4) These regulations apply to any petroleum product listed in clause (3)(b) or (c) if the product is sold or purchased from a retailer, wholesaler or wholesaler-retailer who also sells a petroleum product for other purposes.
(5) These regulations do not apply to a retailer or wholesaler-retailer if the only petroleum products they sell or purchase are any of the products listed in clause (3)(b) or (c).
(6) These regulations apply to a retailer, wholesaler or wholesaler-retailer if they sell or purchase any petroleum product listed in clause (3)(b) or (c) in addition to selling or purchasing a petroleum product for other purposes.
Regulations prevail over contract
5 These regulations prevail over a contract between a wholesaler or wholesaler-retailer and a retailer with respect to the wholesale price and retail mark-up of a petroleum product.
Retailer may opt out of regulations
6 Despite the Act and these regulations, a retailer who is a party to a contract with a wholesaler or wholesaler-retailer may opt out of these regulations with respect to the wholesale price and retail mark-up of a petroleum product.
7 (1) A retailer who decides to opt out of these regulations must notify the Minister by providing the Minister with all of the following:
(a) a statement in the form required by the Minister and signed by the retailer, indicating that the retailer has decided to opt out of these regulations;
(b) a copy of their contract with their wholesaler or wholesaler-retailer.
(2) The documents required by subsection (1) must be provided to the Minister no later than the following:
(a) for a retailer who holds an existing contract with a wholesaler or wholesaler-retailer, 30 days after the contract expires;
(b) for a retailer who does not hold an existing contract with a wholesaler or wholesaler-retailer, 30 days after the retailer is issued a motive fuel retailer’s approval under the Environment Act.
(3) Before the applicable deadline in subsection (2) for sending the statement to the Minister, a retailer must send a copy of the statement required by clause (1)(a) to their wholesaler or wholesaler-retailer, and the wholesaler or wholesaler-retailer must sign the copy and return it to the Minister no later than 15 days after the date they receive it.
(4) A contract between a retailer who opts out of these regulations and a wholesaler or wholesaler-retailer prevails over these regulations with respect to the wholesale price and retail mark-up of a petroleum product.
8 (1) A retailer who decides not to opt out of these regulations with respect to the wholesale price and retail mark-up of a petroleum product must notify the Minister by providing the Minister with a statement in the form required by the Minister and signed by the retailer, indicating the retailer has decided not to opt out of these regulations.
(2) The statement required by subsection (1) must be provided to the Minister no later than the following:
(a) for a retailer who holds an existing contract with a wholesaler or wholesaler-retailer, 30 days after the contract expires;
(b) for a retailer who does not hold an existing contract with a wholesaler or wholesaler-retailer, 30 days after the retailer is issued a motive fuel retailer’s approval under the Environment Act.
(3) Before the applicable deadline in subsection (2) for sending the statement to the Minister, a retailer must send a copy of the statement required under subsection (1) to their wholesaler or wholesaler-retailer and the wholesaler or wholesaler-retailer must sign the copy and return it to the Minister no later than 15 days after the date they received it.
(4) Any contractual provision respecting compensation, including cross leases, dealer incentive payments, volume-associated payments, bonus incentives or any other type of compensation determined by the Minister, in a contract between a retailer who decides not to opt out of these regulations and a wholesaler or wholesaler-retailer is null and void, but nothing in these regulations prevents a retailer and a wholesaler or wholesaler-retailer from entering a new agreement respecting compensation other than the retail mark-up.
Retailer remains responsible for debts owed under contract
9 A retailer remains responsible, in accordance with the terms of any contract with a wholesaler or wholesaler-retailer, for repayment of any debt owed to the wholesaler or wholesaler-retailer regardless of whether or not the retailer opts out of these regulations with respect to the wholesale price and retail mark-up of a petroleum product.
Prescribed minimum and maximum retail price[s] still apply
10 A retailer must comply with Section 14, respecting the price to be charged to a consumer for a petroleum product, regardless of whether the retailer and the wholesaler or wholesaler-retailer have opted out of these regulations with respect to the wholesale price and retail mark-up of a petroleum product as permitted by Section 6.
11 (1) A wholesaler or wholesaler-retailer who sells a petroleum product in the Province must pay monthly assessment fees based upon the sales volume of the petroleum product sold by the person in the Province at rates determined by the Minister and the Board.
(2) The monthly assessment fees must be paid at the same time as the tax required to be remitted to the Minister of Finance under Section 12 of the Revenue Act Regulations made under the Revenue Act and a wholesaler or wholesaler-retailer must file an addendum to the agent’s return as required by the Minister.
(3) The Board may recover all or part of its direct and indirect costs for administering any powers or duties delegated to it under the Act or regulations from the monthly assessment fees set by the Board as costs of administering the Act or regulations.
12 (1) Effective immediately after these regulations come into force, and subject to these regulations, all of the following powers under the Act are delegated to the Board:
(a) the power to divide the Province into 1 or more zones in the Province as set out in clause 14(1)(c) of the Act, and in accordance with subsection 13(2);
(b) the power to prescribe the fixed wholesale price as set out in subclause 14(1)(c)(i) of the Act;
(c) the power to prescribe a maximum retail price as set out in subclause 14(1)(c)(ii) of the Act;
(d) the power to prescribe minimum and maximum retail mark-ups as set out in subclause 14(1)(c)(iii) of the Act;
(e) the power to appoint a consumer advocate and determine the powers and duties of the advocate as set out in subclause 14(1)(h) of the Act, and in accordance with Sections 26 to 28;
(f) the power to set fees to be charged to wholesalers to cover the Board’s costs of administering the Act and its regulations, as set out in clause 14(1)(d) of the Act.
(2) The power to set fees to be charged to wholesalers to cover the Minister’s costs of administering the Act and its regulations as set out in clause 14(1)(d) of the Act is delegated to the Minister.
13 (1) Until the Board exercises the power delegated under clause 12(1)(a), the Province is divided into the following zones for the purpose of prescribing prices for each zone:
(a) Zone 1 consists of all of the following:
(i) Halifax County,
(ii) Hants County,
(iii) the southern portion of Colchester County, as divided by a straight line running from Clifton in Colchester County to the intersection of the county lines of Colchester, Pictou, Guysborough and Halifax Counties;
(b) Zone 2 consists of all of the following:
(i) Kings County,
(ii) Lunenburg County,
(iii) the eastern portion of Annapolis County, as divided by a straight line running northwest from the top section of the Queens-Lunenburg county line and extending to the Bay of Fundy;
(c) Zone 3 consists of all of the following:
(i) Queens County,
(ii) Shelburne County,
(iii) Yarmouth County,
(iv) Digby County,
(v) the western portion of Annapolis County as divided in clause (b);
(d) Zone 4 consists of Cumberland County;
(e) Zone 5 consists of all of the following:
(i) Guysborough County,
(ii) Antigonish County,
(iii) Pictou County,
(iv) the northern portion of Colchester County as divided in clause (a),
(v) the Town of Port Hawkesbury in Inverness County,
(vi) an area of land bounded by a straight line extending along the prolongation of the eastern boundary of the Town of Port Hawkesbury to the Trans-Canada Highway (Highway 105) and then southwesterly along the Trans-Canada Highway to the Strait of Canso.
(f) Zone 6 consists of all of the following:
(i) Cape Breton County,
(ii) Victoria County,
(iii) Richmond County,
(iv) Inverness County, except the Town of Port Hawkesbury and an area of land bounded by a straight line extending along the prolongation of the eastern boundary of the Town of Port Hawkesbury to the Trans-Canada Highway (Highway 105) and then southwesterly along the Trans-Canada Highway to the Strait of Canso.
(2) In exercising the power delegated under clause 12(1)(a), the Board may consider any factors the Board considers relevant, including the following factors:
(a) the retail prices that have been charged to retailers and consumers for petroleum products throughout the Province, over a period of time that the Board considers appropriate;
(b) any factors that could explain the differences, if any, between the retail prices across the Province for the period of time established in clause (a), including any of the following:
(i) the distance from a refinery gate to the proposed boundaries for a zone,
(ii) the volume of petroleum product sold to retailers during the period,
(iii) innovations within the industry;
(c) whether new zones are required in order to preserve the viability of markets affected by their proximity to the provincial border;
(d) whether price differences between zones are just and reasonable.
Must charge prices for zone where point of sale located
14 (1) A wholesaler or wholesaler-retailer must charge a retailer the fixed wholesale price for a type of petroleum product for the zone where the point of sale is located or as prescribed by the Board under subsection (3).
(2) A retailer must not charge a consumer a price for a type of petroleum product that is
(a) higher than the maximum retail price for the zone where the point of sale is located or as prescribed by the Board under subsection (3); or
(b) except as permitted by Section 15 or 15A, lower than the minimum retail price for the zone where the point of sale is located or as prescribed by the Board under subsection (3).
(3) On application by a wholesaler, wholesaler-retailer or retailer, and in order to preserve availability of a petroleum product in rural areas, to preserve the viability of markets in the provincial border areas or for another reason the Board considers appropriate, the Board may prescribe a different fixed wholesale price, a different retail mark-up or different minimum and maximum retail prices that the wholesaler, wholesaler-retailer or retailer may charge for a type of petroleum product at a particular point of sale.
Promotions to reduce price at time of sale
15 (1) Effective September 1, 2010, a promotion that has the effect of reducing the price for a petroleum product below the minimum retail price at the time of sale is prohibited unless the wholesaler, retailer or wholesaler-retailer has notified the Minister of all of the following information no later than 5 business days before the start of the promotion:
(a) the start date of the promotion;
(b) the termination date of the promotion;
(c) a description of the promotion;
(d) the participating locations in Nova Scotia at which the promotion is being offered;
(e) any additional information required by the Minister.
(2) If, on September 1, 2010, a promotion that has the effect of reducing the price for a petroleum product below the minimum retail price at the time of sale is currently being offered, the wholesaler, retailer or wholesaler-retailer must notify the Minister of the information referred to in subsection (1) on or before September 10, 2010.
(3) Promotions that have the effect of reducing the price for a petroleum product below the minimum retail price at the time of sale are prohibited on transactions exceeding 100 litres.
(4) The Minister may publish any information received under this Section respecting current and upcoming promotions on a public website.
Reducing price if retailer runs out of Grade 1—Regular gasoline
15A (1) If a retailer runs out of Grade 1—Regular gasoline, the retailer may sell Grade 3—Premium gasoline at a price that is no lower than the minimum retail price for Grade 1—Regular gasoline for the zone where the point of sale is located until the retailer receives a delivery of Grade 1—Regular gasoline.
(2) Except as required by the Motive Fuel and Fuel Oil Approval Regulations made under the Environment Act or by the Weights and Measures Act (Canada), a retailer must not promote, advertise or use signage to indicate a change in price permitted by subsection (1).
(3) A retailer must immediately stop selling Grade 3—Premium gasoline at a price permitted by subsection (1) when the retailer receives a delivery of Grade 1—Regular gasoline.
15B (1) The reporting source to be used by the Board in determining the reported product price under Section 15C is 1 of the following reporting sources, unless the Board has prescribed a different reporting source in accordance with subsections (2) through (4):
(a) Argus Media;
(b) the Platts Report, if the relevant data is not available from Argus Media;
(c) the Oil Price Information Service, if the relevant data is not available from Argus Media or the Platts Report;
(d) the Bloomberg Guide, if the relevant data is not available from Argus Media, the Platts Report or the Oil Price Information Service.
(2) If the market conditions change in such a way that there is a significant difference between the spot market price and the price charged to wholesalers and wholesaler-retailers, the Board may on its own motion investigate whether a different reporting source is just and reasonable.
(3) On application by any of the following, the Board must carry out an investigation under subsection (2):
(a) a retailer, wholesaler or wholesaler-retailer;
(b) any 5 persons, firms or corporations;
(c) the Minister.
(4) Following an investigation, the Board may make an order prescribing a different reporting source to be used for the reported product price, but no order may be made by the Board until a public hearing or inquiry is held.
Reported product price and spot market
15C (1) For gasoline, the reported product price is the volume-weighted average of the daily spot market prices reported in the reporting source prescribed by Section 15B of the components of gasoline set out in subsection (2).
(2) Unless otherwise determined by the Board, the components of gasoline are CBOB and ethanol, and the proportions by volume of the components are deemed to be 90% CBOB and 10% ethanol.
(3) The spot market to be used by the Board for the daily spot market price of each component of gasoline is as follows, unless the Board has prescribed a different spot market for any of the components in accordance with subsections (6) to (8):
(a) for CBOB, New York Harbour [Harbor];
(b) for ethanol, Chicago.
(4) For ultra-low-sulfur diesel, the reported product price is the daily spot market price reported in the reporting source prescribed by Section 15B for ultra-low-sulfur diesel.
(5) The spot market to be used by the Board for the daily spot market price of ultra-low-sulfur diesel is New York Harbour [Harbor], unless the Board has prescribed a different spot market in accordance with subsections (6) to (8).
(6) If the market conditions change in such a way that there is a significant difference between the spot market price and the price charged to wholesalers and wholesaler-retailers, the Board may on its own motion investigate whether a different spot market for a component of gasoline, or for ultra-low-sulfur diesel, is just and reasonable.
(7) On application by any of the following, the Board must carry out an investigation under subsection (6):
(a) a retailer, wholesaler or wholesaler-retailer;
(b) any 5 persons, firms or corporations;
(c) the Minister.
(8) Following an investigation, the Board may make an order prescribing a different spot market to be used for a component of gasoline or for ultra-low-sulfur diesel, but no order may be made by the Board until a public hearing or inquiry is held.
16 (1) Every Friday, at a time the Board considers appropriate, the Board must prescribe a benchmark price for each type of petroleum product.
(2) For Grade 1—Regular gasoline, the benchmark price prescribed by the Board is the average of the average of the daily high and low reported product prices during the period since the last benchmark price adjustment for Grade 1—Regular gasoline.
(2A) For Grade 2—Mid-grade gasoline, the Board may prescribe a benchmark price using criteria determined by the Board.
(2B) For Grade 3—Premium gasoline, the Board may prescribe a benchmark price using criteria determined by the Board.
(2C) For ultra-low-sulfur diesel, the benchmark price prescribed by the Board is the average of the average of the daily high and low reported product prices during the period since the last benchmark price adjustment for ultra-low-sulfur diesel.
(2D) In prescribing a benchmark price for any type of petroleum product, the Board may make an adjustment to account for any transportation differential between the New York Harbour [Harbor] spot market and another spot market.
(3) In prescribing a benchmark price, the daily exchange rates published by the Bank of Canada shall be used to convert United States currency to Canadian currency.
(4) A prescribed benchmark price must be expressed in Canadian cents per litre to the nearest one-hundredth of a cent or in another unit of measurement appropriate to the petroleum product.
(5) If the Board considers it appropriate, the Board may prescribe a benchmark price at any time.
17 (1) For each type of petroleum product, the fixed wholesale price in a zone is the sum of all of the following:
(a) the current benchmark price as prescribed by the Board under Section 16;
(b) the wholesale margin as calculated by the Board in accordance with subsection (4);
(c) all taxes, excluding the taxes imposed under subsections 165(1) and 165(2) of the Excise Tax Act (Canada);
(d) if the Board considers it appropriate, transportation adjustments and forward averaging corrections;
(e) the carbon price
(i) calculated according to the formulas in Schedule 1, except as provided in subclause (ii) for 2019,
(ii) for the 2019 calendar year, as follows:
(A) for gasoline, 0.94¢/L, and
(B) for ultra-low-sulfur diesel, 1.20¢/L;
(f) on and after the date that the Board sets a clean fuel adjustor amount under Section 17A, the current clean fuel adjustor amount;
(g) fuel charges, if any, payable to His Majesty in right of Canada.
(1A) On and after 190 days after the final auction held in 2023, the carbon price referred to in clause (1)(e) must be set at 0 cents per litre for both gasoline and ultra-low-sulfur diesel oil.
(1B) For the purposes of subsection (1A), “auction” has the same meaning as it does in Schedule 1.
(2) In clause (1)(d), “forward averaging correction” means the difference between the benchmark price and the actual reported product price for a petroleum product since the last benchmark price adjustment for that petroleum product, and the forward averaging correction may be adjusted for variations in the volume sold during that period.
(3) In this Section,“wholesale margin” for a petroleum product means the difference between the benchmark price for that petroleum product and the price at which a wholesaler sells that petroleum product to a retailer, excluding taxes imposed under subsections 165(1) and 165(2) of the Excise Tax Act (Canada).
(4) In calculating the wholesale margin for a type of petroleum product in a zone, the Board may consider any factors the Board considers relevant, including any of the following:
(a) the wholesale margin for the type of petroleum product for the Province or for a zone, excluding taxes imposed under subsection[s] 165(1) and 165(2) of the Excise Tax Act (Canada), over a period of time the Board considers appropriate;
(b) whether the wholesale margins identified under clause (a) are just and reasonable, taking into account any of the following:
(i) the distance from the refinery gate to the boundaries of a zone,
(ii) the volume of petroleum product sold to retailers during the period, or
(iii) innovations within the industry;
(c) whether additional margin is required for winter blending of ultra-low-sulfur diesel oil;
(d) whether additional margin is required for biocomponents of ultra-low-sulfur diesel;
(e) whether additional margin is required for ethanol blending of gasoline;
(f) whether additional margin is required for new gasoline or ultra-low-sulfur diesel products;
(g) whether additional margin is required for requirements set by the Government of Canada related to biocomponents of ultra-low-sulfur diesel products;
(h) whether additional margin is required for new technologies related to the refining, wholesaling, and retailing of gasoline and ultra-low-sulfur diesel products;
(i) whether additional margin is required for components of gasoline or ultra-low-sulfur diesel products not currently priced;
(j) the factors set out in subsection 14(3).
(5) The fixed wholesale price must be expressed in Canadian cents per litre to the nearest one-hundredth of a cent or another unit of measurement appropriate to the petroleum product.
17A (1) At any time, the Board may on its own motion investigate a methodology for setting a clean fuel adjustor amount to ensure that it is just and reasonable in light of 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).
(2) On application by any of the following, the Board must carry out an investigation under subsection (1):
(a) a retailer, wholesaler or wholesaler-retailer;
(b) any 5 persons, firms or corporations;
(c) the Minister.
(3) In investigating the methodology for setting a clean fuel adjustor amount, the Board may consider any information the Board considers relevant, including any of the following:
(a) written submissions from primary suppliers, wholesalers, retailers and the consumer advocate 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 acquisition costs;
(e) any other information the Board considers relevant 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).
(4) Following an investigation, the Board may make an order establishing the methodology for setting a clean fuel adjustor amount, but no order may be made by the Board until a public hearing or inquiry is held.
(5) The Board may set a clean fuel adjustor amount at any time the Board considers appropriate, using
(a) the methodology established in an order made under subsection (4); and
(b) the criteria and procedure determined by the Board.
(6) The clean fuel adjustor amount must be expressed in Canadian cents per litre to the nearest one-hundredth of a cent or in another unit of measurement appropriate to the petroleum product.
Maximum and minimum retail mark-up
18 (1) When prescribing the minimum and maximum retail mark-ups for a type of petroleum product in a zone, the Board may consider any factors the Board considers relevant, including any of the following:
(a) the retail mark-ups within the Province or a zone for the type of petroleum product, excluding taxes imposed under subsections 165(1) and 165(2) of the Excise Tax Act (Canada), over a period of time the Board considers appropriate;
(b) whether the retail mark-ups identified under clause (a) are just and reasonable, taking into account any of the following:
(i) the distance from a refinery gate to the boundaries of the zone,
(ii) the volume of petroleum product sold to consumers during the period,
(iii) innovations within the industry;
(c) whether the petroleum product is sold or purchased at a full-service retail outlet or a self-service retail outlet;
(d) whether the minimum retail mark-up will preserve the viability of markets affected by their proximity to the provincial border.
(2) The minimum and maximum retail mark-ups must be expressed in Canadian cents per litre to the nearest one-tenth of a cent or another unit of measurement appropriate to the petroleum product.
Maximum and minimum retail price[s]
19 (1) For each type of petroleum product, the maximum retail price in a zone is the sum of all of the following:
(a) the fixed wholesale price;
(b) the maximum retail mark-up prescribed by the Board under Section 18;
(c) all taxes.
(2) For each type of petroleum product, the minimum retail price in a zone is the sum of all of the following:
(a) the fixed wholesale price;
(b) the minimum retail mark-up prescribed by the Board under Section 18;
(c) all taxes.
Informing wholesalers, wholesaler-retailers and retailers of prices
20 (1) The Board must ensure that all wholesalers and wholesaler-retailers are informed of the fixed wholesale prices and maximum and minimum retail prices before they are to take effect.
(2) A wholesaler or wholesaler-retailer must ensure that any retailer to whom it sells a petroleum product is informed of any price change before it takes effect.
No disclosure of price before in effect
21 Unless authorized by the Board or under the Act or regulations, a wholesaler, wholesaler-retailer or retailer must not disclose to any person a price set under these regulations before the date on which the price comes into effect.
22 (1) The Board is hereby designated under subsection [clause] 14(1)(g) of the Act to conduct public hearings respecting any matter within its jurisdiction under these regulations, including any of the following:
(a) dividing the Province into zones;
(b) fixing wholesale prices, maximum retail prices and minimum and maximum retail mark-ups set under these regulations;
(c) the effect of promotions on the regulatory scheme established by the Act and regulations, and has the power to make recommendations to the Minister about promotions.
(2) The Board may order that some or all of its direct and indirect costs of a hearing be paid by a participant at the hearing.
(3) If the Board allows applications for funding to intervenors under its hearing processes and procedures, the funding is an expense of the Board.
23 The Board has all the powers set out in the Utility and Review Board Act, including the power to establish its own processes and procedures for fulfilling its functions and duties under the Act and regulations.
Investigations by Board to ensure matters just and reasonable
24 (1) With or without notice, the Board may on its own motion investigate whether any matter within its jurisdiction under these regulations is just and reasonable, including any of the following matters:
(a) the boundaries of the zones;
(b) the fixed wholesale prices;
(c) the maximum retail prices;
(d) the minimum and maximum retail mark-ups.
(2) On application by any of the following, the Board must carry out an investigation under subsection (1):
(a) a retailer, wholesaler or wholesaler-retailer;
(b) any 5 persons, firms or corporations;
(c) the Minister.
(3) Following an investigation, the Board may make any order it considers necessary to ensure any matter within its jurisdiction under these regulations is just and reasonable, but no order may be made by the Board until a public hearing or inquiry is held in respect of the matter.
Interim order in emergency situation
24A (1) In this Section, an “emergency situation” means a situation that in the Board’s opinion threatens the security of the petroleum supply, including any of the following situations:
(a) a disruption to the supply of a petroleum product resulting from an increase in the rack rate charged to wholesalers and wholesaler-retailers that leads wholesalers and wholesaler-retailers to not sell a petroleum product because they are not receiving a sufficient wholesale margin;
(b) a shortage of supply of a petroleum product to wholesalers and wholesaler-retailers that affects 1 or more zones.
(2) Despite subsection 24(3), in an emergency situation the Board may make an interim order to temporarily prescribe interim fixed wholesale prices, maximum retail prices or minimum and maximum retail mark-ups until the public hearing or inquiry required by subsection 24(3) can be held.
Policies, directives and bulletins of Board
25 The Board may issue general policies, directives, and bulletins consistent with the Act and these regulations about any matter within the Board’s jurisdiction under these regulations, including any of the following:
(a) forward averaging corrections,
(b) additional margin that may be required for winter blending of the ultra-low-sulfur diesel oil;
(c) circumstances when it is appropriate for the Board to prescribe a benchmark price under subsection 16(5).
When consumer advocate appointed
26 If the Board considers it appropriate, or on direction from the Minister, the Board must appoint a person to act as a consumer advocate in a hearing before the Board under these regulations.
Powers and duties of consumer advocate
27 (1) A consumer advocate must do all of the following:
(a) participate in all aspects of a hearing before the Board;
(b) represent the interests of consumers as a full intervenor.
(2) A consumer advocate has all the powers and authority necessary to carry out their duties under subsection (1) or any other duties assigned by the Board.
Fees and expenses of consumer advocate
28 (1) The Board may fix fees and expenses of a consumer advocate in performing their functions and duties.
(2) The fees and expenses referred to in subsection (1)
(a) are expenses of the Board;
(b) may include the cost of retaining experts and legal counsel to provide the consumer advocate with advice, including testimony, on technical and legal matters.
29 (1) A party to a proceeding before the Board, a wholesaler, wholesaler-retailer or retailer must give the Board all information required by it to carry out its duties under the Act and regulations and must give specific answers to all specific questions asked by the Board.
(2) A wholesaler, wholesaler-retailer or retailer who receives a blank form from the Board with directions to fill in the form must answer each question on the form fully and correctly, and if a question is not fully and correctly answered must give a good and sufficient reason for failing to do so.
(3) The responses given under subsection (2) must be certified by an authorized representative of the wholesaler, wholesaler-retailer or retailer and returned to the Board at its office no later than the deadline set by the Board.
(4) If required by the Board, a wholesaler, wholesaler-retailer or retailer must deliver to the Board any documents, books, accounts, papers, records or memoranda, or copies of them, in whatever form the Board directs.
Inspection of records by Board
30 (1) The Board, a member of the Board or a person employed by the Board for that purpose, has, on demand, the right to inspect the documents, books, accounts, papers, records and memoranda of a wholesaler, wholesaler-retailer or retailer.
(2) A person other than a Board member who makes a demand under subsection (1) must produce their authority to make the inspection or examination.
31 The Board or a member of the Board has the power to examine, under oath, an officer, agent or employee of a wholesaler, wholesaler-retailer or retailer in relation to its business and affairs.
Transitional–retailers remain opted out of regulations or not opted out of regulations
32 (1) A retailer who opted out of the regulations with respect to the wholesale price and retail mark-up of a petroleum product under any previous regulations respecting petroleum pricing made under the Act and who remained opted out of the regulations on September 30, 2009, continues to be opted out under these regulations until the retailer notifies the Minister under Section 7 or 8.
(2) A retailer who decided not to opt out of the regulations with respect to the wholesale price and retail mark-up of a petroleum product under any previous regulations respecting petroleum pricing made under the Act and who remained not opted out of the regulations on September 30, 2009, continues to be not opted out under these regulations until the retailer notifies the Minister under Section 7 or 8.
________________________________________________________________
Schedule 1—Calculation of Carbon Price for Gasoline and Ultra-Low-Sulfur Diesel
(Petroleum Products Pricing Regulations, subsection 17(1))
In this Schedule,
“auction” means an auction of emission allowances under the Cap-and-Trade Program Regulations;
“Cap-and-Trade Program Regulations” means the Cap-and-Trade Program Regulations made under the Environment Act;
“Consumer Price Index” means the all-items Consumer Price Index for Nova Scotia, not seasonally adjusted, published by Statistics Canada under the authority of the Statistics Act (Canada);
“emission allowance” means an emission allowance sold at an auction;
“floor price” means the minimum price in Canadian dollars of an emission allowance as determined under the Cap-and-Trade Program Regulations;
“GHG” means greenhouse gases measured as carbon dioxide equivalent calculated in accordance with the Quantification, Reporting and Verification Regulations made under the Environment Act;
“settlement price” means the final sale price in Canadian dollars of an emission allowance as determined under the Cap-and-Trade Program Regulations.
Formulas for Calculating Carbon Price for Gasoline
Formula 1.0—total carbon price per litre of gasoline
The formula for calculating the total carbon price per litre of gasoline is as follows:
in which
TCLgas_t =total carbon price per litre, rounded to the nearest one-hundredth of a cent
SAgas_t = settlement price adjustment as calculated under Formula 1.1, rounded to the nearest one-hundredth of a cent
C = adjustment to account for the number of months between the most recently held auction and the next scheduled auction, as calculated under Formula 1.2, or, after the final auction held in 2023, 6 for 180 days
Formula 1.1—settlement price adjustment
The formula for calculating the settlement price adjustment is as follows:
in which
SAgas_t = settlement price adjustment rounded to the nearest one-hundredth of a cent
CPt = price per tonne of GHG based on the settlement price at the most recent auction
FPt = floor price at the most recent auction
423.549 = equivalent in litres of gasoline of 1 tonne of GHG
0.2 = proportion of emission allowances that a fuel supplier emitter must purchase
100 = equivalent in cents of 1 dollar
Formula 1.2—adjustment for months between auctions
The formula for calculating the adjustment to account for the months between auctions is as follows:
in which
C = adjustment to account for the number of months between the most recently held auction and the next scheduled auction
AY = for 2020, the number of auctions scheduled to be held in 2020, for 2021 and each subsequent year the number of auctions held in the previous calendar year
AM = the number of months between the most recently held auction and the next scheduled auction
Formulas for Calculating Carbon Price for Ultra-Low-Sulfur Diesel
Formula 2.0—total carbon price per litre of ultra-low-sulfur diesel oil
The formula for calculating the total carbon price per litre of ultra-low-sulfur diesel oil is as follows:
in which
TCLdiesel_t = total carbon price per litre, rounded to the nearest one-hundredth of a cent
SAdiesel_t =settlement price adjustment as calculated under Formula 2.1, rounded to the nearest one-hundredth of a cent
C = adjustment to account for the number of months between the most recently held auction and the next scheduled auction, as calculated under Formula 2.2, or, after the final auction held in 2023, 6 for 180 days
Formula 2.1—settlement price adjustment
The formula for calculating the settlement price adjustment is as follows:
in which
SAdiesel_t = settlement price adjustment rounded to the nearest one-hundredth of a cent
CPt = price per tonne of GHG based on the settlement price of the most recent auction
FPt = floor price at the most recent auction
332.557 = equivalent in litres of ultra-low-sulfur diesel of 1 tonne of GHG
0.2 = proportion of emission allowances that a fuel supplier emitter must purchase
100 = equivalent in cents of 1 dollar
Formula 2.2—adjustment for months between auctions
The formula for calculating the adjustment to account for the number of months between auctions is as follows:
in which
C = adjustment to account for the number of months between the most recently held auction and the next scheduled auction
AY = the number of auctions scheduled to be held in,
(i) for 2020, the calendar year 2020,
(ii) for 2021 and each subsequent year, the previous calendar year
AM = the number of months between the most recently held auction and the next scheduled auction
Legislative History
Reference Tables
Petroleum Products Pricing Regulations |
N.S. Reg. 286/2009 |
Petroleum Products Pricing Act |
|
Note: The information in these tables does not form part of the regulations and is compiled by the Office of the Registrar of Regulations for reference only. |
|
Source Law
The current consolidation of the Petroleum Products Pricing Regulations made under the Petroleum Products Pricing Act includes all of the following regulations:
N.S. |
In force |
How in force |
Royal Gazette |
286/2009
|
Oct 1, 2009 |
date specified |
Oct 9, 2009 |
128/2010 |
Aug 24, 2010 |
date specified |
Sep 10, 2010 |
121/2018 |
Jul 3, 2018 |
date specified |
Jul 20, 2018 |
192/2018 |
Nov 13, 2018 |
date specified |
Nov 23, 2018 |
327/2022 |
Jan 1, 2023 |
date specified |
Dec 30, 2022 |
95/2023 |
Jun 2, 2023 |
date specified |
Jun 16, 2023 |
The following regulations are not yet in force and are not included in the current consolidation:
N.S. |
In force |
How in force |
Royal Gazette |
|
|
|
|
|
|
|
|
*See subsection 3(6) of the Regulations Act for
rules about in force dates of regulations.
ad. = added |
fc. = fee change |
rep. = repealed |
|
Provision affected
|
How affected
|
||
3, defn. of “Argus Media”................ |
ad. 121/2018
|
||
3, defn. of “benchmark price”.......... |
am. 95/2023 |
||
3, defn. of “CBOB”.......................... |
ad. 95/2023
|
||
3, defn. of “clean fuel adjustor”....... |
ad. 95/2023
|
||
3, defn. of “gasoline”........................ |
am.
95/2023
|
||
3, defn. of “Oil Price Information Service”.......................................... |
ad. 121/2018
|
||
3, defn. of “promotion”.................... |
ad. 128/2010
|
||
3, defn. of “reported product price”. |
rs. 121/2018; am. 95/2023 |
||
3, defn. of “spot market”.................. |
ad. 95/2023
|
||
3, defn. of “spot market price”......... |
ad. 95/2023
|
||
14(2)(b)............................................. |
am. 128/2010, 121/2018 |
||
15...................................................... |
rs. 128/2010 |
||
15A................................................... |
ad. 121/2018
|
||
15B................................................... |
ad. 121/2018
|
||
. 15B(1)............................................ |
am.
95/2023
|
||
. 15B(1)(a)........................................ |
am.
95/2023
|
||
. 15B(1)(b)........................................ |
rs. 95/2023
|
||
. 15B(1)(c)........................................ |
rs. 95/2023
|
||
. 15B(1)(d)........................................ |
rs. 95/2023
|
||
. 15B(2)............................................ |
am.
95/2023
|
||
15C................................................... |
ad. 95/2023
|
||
16(2)................................................. |
rs. 95/2023
|
||
16(2A)-(2D)..................................... |
ad. 95/2023
|
||
16(3)................................................. |
am. 121/2018 |
||
16(4)................................................. |
am. 192/2018 |
||
17(1)(e)............................................. |
ad. 192/2018
|
||
. 17(1)(e)(ii)(B)................................ |
am.
95/2023
|
||
17(1)(f)-(g)....................................... |
ad. 95/2023
|
||
17(1A)-(1B)...................................... |
ad. 327/2022
|
||
17(4)(d)............................................. |
rs. 121/2018 |
||
17(4)(e)............................................. |
ad. 121/2018
|
||
17(4)(f)............................................. |
ad. 121/2018; am. 95/2023
|
||
17(4)(g)-(h)....................................... |
ad. 121/2018
|
||
17(4)(i)............................................. |
ad. 121/2018; am. 95/2023
|
||
17(4)(j)............................................. |
ad. 121/2018
|
||
17(5)................................................. |
am. 192/2018 |
||
17A................................................... |
ad. 95/2023
|
||
24A................................................... |
ad. 121/2018
|
||
25(b)................................................. |
am. 121/2018 |
||
Schedules |
|||
Schedule 1........................................ |
ad. 192/2018
|
||
Formulas for Calculating Carbon Price for Gasoline
|
|
||
Formula 1.0...................................... |
rs. 327/2022 |
||
Formula 1.1...................................... |
rep. 327/2022 |
||
Formula 1.1...................................... |
ra. from 1.3 327/2022
|
||
Formula 1.2...................................... |
rep. 327/2022 |
||
Formula 1.2...................................... |
ra. from 1.4 327/2022
|
||
Formula 1.3...................................... |
ra. as 1.1 327/2022
|
||
Formula 1.4...................................... |
ra. as 1.2 327/2022
|
||
Formulas for Calculating Carbon Price for Ultra-Low-Sulfur Diesel
|
|
||
Formula 2.0...................................... |
rs. 327/2022 |
||
Formula 2.1...................................... |
rep. 327/2022 |
||
Formula 2.1...................................... |
ra. from 2.3 327/2022
|
||
Formula 2.2...................................... |
rep. 327/2022 |
||
Formula 2.2...................................... |
ra. from 2.4 327/2022
|
||
Formula 2.3...................................... |
ra. as 2.1 327/2022
|
||
Formula 2.4...................................... |
ra. as 2.2 327/2022
|
||
Note that changes to headings are not included in the above table.
Editorial Notes and Corrections:
|
Note |
Effective |
1 |
The reference to the Minister of Finance in s. 11(2) should be read as a reference to the Minister of Finance and Treasury Board in accordance with Order in Council 2013-348 under the Public Service Act, R.S.N.S. 1989, c. 376. |
Oct 22, 2013 |
|
|
|
Repealed and Superseded:
N.S. |
Title |
In force |
Repealed |
97/2006 |
Petroleum Products Pricing Regulations
|
Jul 1, 2006 |
Oct 1, 2009 |
Note: Only regulations that are specifically repealed and replaced appear in this table. It may not reflect the entire history of regulations on this subject matter.