April 15, 2003
(Government Services and Lands)
The following is being distributed at the request of the Petroleum Products Pricing Commission:
World prices further impact fuels in Newfoundland and Labrador
Falling world oil prices have again resulted in a downward adjustment for all fuels regulated in Newfoundland and Labrador.
Tuesday, April 15, marks the Petroleum Products Pricing Commission’s (PPPC) regularly scheduled release of maximum fuel prices in the province following three weeks of interruptions because of major fluctuations in world prices.
Effective 12:01 a.m. Tuesday, April 15, 2003, the maximum prices for all types of gasoline will fall by 2.9 or 3.0 cents per litre (cpl) depending on the rounding of HST in a particular pricing zone, and diesel will decline by 0.9 or 1.0 cpl. These fuels were last adjusted April 8.
Home heating fuels will also see a downward move - No. 2 blend furnace oil by 1.19 cpl and stove oil by 1.18 cpl. - since it was previously shifted April 1.
Residential propane used for home heating purposes will dip by 12.2 cpl since it was last adjusted March 25, 2003.
George Saunders, PPPC commissioner, said expectations were that a Middle East war would result in significant increases and a potential shortage of supplies.
"What we’ve seen instead is a market where world fuel prices are on the way down," noted Mr. Saunders. "This activity follows a long period where several stresses were placed on fuel prices that forced them to all-time highs. But there appears to be a move to restore stability, and we can only watch events as they unfold to ensure the people in this province are getting a fair price for these products."
Since March 15, 2003, the commissioner pointed out that all fuels have seen significant changes: gasoline – 10.3 cpl; diesel – 19.0 cpl; No. 2 blend furnace oil – 16.57 cpl; stove oil – 16.34; and, residential propane – 17.9 cpl.
He said it is uncertain how long this downward trend will last, as prices could move in either direction at any time.
"That’s the nature of the market, and we have to be prepared to move prices upward, just as we have recently adjusted prices downward, should the conditions warrant," cautioned the commissioner.
These prices will remain in effect until May 15 unless the PPPC has to again use its interruption formula to adjust prices outside of its regular schedule.
Fuels - Maximum Retail Pump Prices - Effective April 15, 2003;
Media contact: Michelle Hicks, Communications. Tel: 1-866-489-8800 or (709) 489-8837; cell: (709) 486-4789.
2003 04 15 9:05 a.m.