Premier Bernard Lord is hinting at a pre-election gasoline tax cut, amid accusations he interfered with the agency in charge of setting fuel prices to improve his party's fortunes in the pending campaign.

Lord is preparing to kick off an election campaign on Saturday, sending New Brunswick voters to the polls on Sept. 18. The pump price of gasoline is shaping up to be the No. 1 issue fuelling the campaign.

New Brunswick Premier Bernard Lord says his Progressive Conservative Party's election platform could include gas tax cuts.
(Andrew Vaughan/Canadian Press)

Now, Lord is hinting he might use the province's $243-million surplus to slash the gas tax, which has provided the New Brunswick government with an unexpected boon as gasoline prices skyrocketed.

Lord told reporters Wednesday that a gas tax cut could be part of his party's election platform.

The price of gasoline dropped by nearly 10 cents per litre, to $1.09 for regular unleaded gas, on Wednesday after the New Brunswick Public Utilities Board used a special interrupter clause to reset the price outside its regular schedule.

New Brunswickers are enjoying the break, but there's confusion about whether prices should have dropped a week ago. Lord is also facing criticism for asking senior Energy Department staff to order the PUB to reset the prices.

Last Thursday, members of the Public Utilities Board held a special meeting to decide whether New Brunswick's new gas price regulation system required them to drop the price to reflect the dramatic swing in world oil prices.

Normally the board sets a new price every two weeks, but a clause requires it to act more quickly when world prices take a big swing.

Board members unsure

Acting chair Don Smith said board members weren't certain whether that had kicked in last Thursday.

New Brunswickers kept paying $1.19 per litre for unleaded gas until Wednesday, when Lord said he told bureaucrats to call the PUB and ask what was taking so long.

"I can't say it's because the call made the difference," Lord said. "Maybe they were going to do it anyway. That's possible. But I can tell you I wanted to make sure the regulation and legislation would be respected."

The opposition Liberals say Lord is trying to look like a hero just in time for the provincial election he's calling on Saturday.

Liberal Leader Shawn Graham said Lord's interference has turned the PUB into a political instrument.

"It effectively begs the question: 'What role does the PUB have to play in the regulation of gasoline if there's going to be political interference?' " he said.

The next scheduled price change will happen on Aug. 24, in the midst of the campaign.