NB diesel tax hike bites truckers bottom line

FREDERICTON — New Brunswick’s truck freight carriers could expect a hit to their bottom lines now that a diesel fuel tax hike took effect this week.

According to Atlantic Provinces Trucking Association president Jean-Marc Picard, the 2.3-cent per liter hike could bite 2 percent from carriers’ profit margins.

Truckers now have to pay 19.2 cents per litre in tax, up from 16.9 cents, reports the Telegraph Journal.

The announcement was made in the recent provincial budget and took effect almost immediately.

"From an industry perspective it’s a huge impact, especially with today’s diesel prices at the levels they’re at," said Picard.

"Fuel is their largest cost so it’s straight to the bottom line," said, Picard who notes that the implementation of the tax hike doesn’t give carriers enough time to adjust fuel surcharges.