Irving Oil request for 'urgent' wholesale price hike stalls over redacted evidence

Irving Oil's attempt to win immediate wholesale petroleum price increases from the New Brunswick Energy and Utilities Board stalled quickly Monday over objections from a variety of community organizations that too much of the application is based on secret material.

"The amount of information that is redacted in these documents makes it very difficult for our organization to meaningfully participate," said Abram Lutes with the New Brunswick Common Front for Social Justice

"It limits our ability to participate meaningfully and to advocate on behalf of low income workers and people in poverty."

Several other groups expressed similar concerns and the EUB's acting Chair Francois Beaulieu scheduled a hearing Friday morning to deal with the objections. That forced a delay in Irving Oil's request for immediate increases in wholesale petroleum margins at least until next week.

"The board will adjourn and we'll await the interveners to file their objections," said Beaulieu.

Until recently, Irving Oil has shown little outward concern about petroleum wholesale margins in New Brunswick. Since 2016, it twice declined to participate in scheduled reviews of the issue by the board, including the latest one launched in 2019.

COVID-19 has affected business

But the company says the COVID-19 pandemic has hit its business hard, and it now requires immediate changes.

In prepared remarks for the EUB on Monday that he was ultimately unable to deliver before proceedings adjourned Irving Oil marketing president Darren Gillis planned to outline the company's hardships

"We've reduced spending across the company, cancelled projects, and unfortunately reduced our employee and contractor workforce," said the prepared remarks.

"Significant sales declines (Jet Fuel, Marine Fuel and Transportation Fuel) and higher costs are having a serious impact on the entire supply chain. No one, no company is insulated from the impacts of the pandemic, including Irving Oil."

Company asks for substantial increases

The company is applying for a 62.8 per cent (4.09 cent per litre) increase in the allowed wholesale margin for motor fuels and a 54,9 per cent (3.02 cent per litre) increase in the margin for furnace oil.

It is asking that prior to a full hearing in late March, 85 per cent of the requested increase on motor fuels (3.5 cents) and 99 per cent of the increase on furnace oil (3.0 cents) be granted immediately

The increases are substantially more than the 11 per cent growth in inflation that has occurred since the margins last changed in March 2013. But much of Irving Oil's evidence in support of changes that large is not being publicly shared to protect company operational and financial information, an immediate sticking point Monday

Beaulieu noted the EUB itself along with public intervener Heather Black and any experts they hire are permitted to view all the material, but that did little to satisfy several participants.

Hafsah Mohammad with the Moncton social justice and climate action group Grassroots NB expressed support for Black's role but said more perspectives on Irving Oil's application are needed

"I think that has a problematic element with one person speaking for the entire public," said Mohammad.

"I thought that's why there are interveners. If it is solely on Heather Black I am concerned with just one person being assigned to this role."

Mohammad also pressed Beaulieu to explain his view on a letter sent to the EUB by Mike Holland, the New Brunswick natural resources and energy development minister, and its effect on the hearing..

Holland wrote to the board on Jan. 6, one day after Irving Oil filed its application, to back the company's request for an "expedited" review.

"I did not have any intention to comment on the letter but if an intervener does put it forward I'll comment on it," said Beaulieu.

"I'm putting it forward," said Mohammad

Beaulieu said all citizens have a right to send letters to comment on matters before the board, and he viewed Holland's as just one of many that have arrived from the public.

Irving oil lawyer concerned over delay

"Any person in the province of New Brunswick can comment on any proceeding of the board," said Beaulieu "We're independent and that will continue."

Irving Oil lawyer Len Hoyt expressed concern about delays in getting to the request for immediate price increases, but the application is effectively on hold for a week while the company's reliance on confidential information is dealt with first

"The urgency and the expediency of this is of upmost importance to my client." said Hoyt.