Fuel prices effective February 15, 2002, show a very modest decline from January for most products, but a slight increase is set for mid-grade and supreme products. The following changes in pricing become effective 8:00 a.m. Friday, February 15, 2002:

1) Regular unleaded gasoline will decrease by 0.2cpl (cents per litre) in several zones including Avalon and 0.3cpl in most other zones in the province.

2) Mid-grade and supreme fuels will increase by 1cpl in all zones throughout the province.

3) Diesel fuel will decrease 0.8 cpl in all zones throughout the province.

4) Home heat prices, including furnace oil and stove oil, will decrease by 0.8 cpl in all zones throughout the province.

5) Propane prices will decrease slightly by 0.2 cpl in all zones which is a continuation of the downward trend in price. This applies only to propane for home heating purposes.

Various factors affected the prices overall during the past thirty days. Among these include an increase in demand for mid-grade and supreme fuels reflecting the increased usage of these products in winter season. Platt�s New York Harbour pricing data for these superior products shows a slight overall increase in the past month. Higher inventories than expected of high usage products such as home heating fuels, diesel, and regular unleaded gasoline have continued downward pressures on world market prices. The weaker Canadian dollar during the past month resulted in a decrease that was less than it would have been otherwise. If the dollar had maintained its value or increased, the price drop in gasoline and home heating fuels would have been much more significant. Platt�s world market pricing data is provided to us in U.S. dollars, and when the conversion factor is applied, the decline is less than anticipated because of the declining value of our dollar.

The commission will continue to monitor closely any changes in all products on a daily basis during the coming month, but, as can be seen, prices are affected by factors outside the petroleum industry, especially the fluctuating value of the Canadian dollar.

Overall, fuel prices are not experiencing the serious jumps that characterized the market just a year ago and it is hoped that this period of relative stability will continue.

We emphasize once more that the prices set by the commission are maximum prices only and that companies are encouraged to explore competitive lower pricing in the marketplace during the coming month. Although the decline this month is modest, it nevertheless reflects the close watch we place on all products available and used by consumers in Newfoundland and Labrador.

Media contact: George Saunders, Commissioner, (709) 489-8877 or 1 (866) 489-8800.

Newfoundland and Labrador Petroleum Products Pricing Commission Pricing Zones
Automotive Fuels - Maximum Retail Pump Prices - Effective February 15, 2002
Heating Fuels - Residential Propane - Maximum Tank Wagon Prices - Effective February 15, 2002
Heating Fuels - Maximum Tank Wagon (or Tank Farm) Prices - Effective February 15, 2002

2002 02 15                     10:10 a.m.