May 28, 2004
(Government Services)


The following is being distributed at the request of the Petroleum Products Pricing Commission:

Supply concerns lead to removal of price freeze for Zone 10a

Effective 12:01 a.m. Friday, May, 28, the Petroleum Products Pricing Commission (PPPC) has decided to lift the price freeze for Zone 10a (Mary's Harbour to Cartwright).

The policy to freeze prices for the area was put in place by the PPPC based on consultation with stakeholders and the fact that new fuel stocks could not be supplied to the area over the winter months. The price freeze has been in effect since November 15, 2003, and affects Zones 10a, 11 (Coastal Labrador South) and 14 (Coastal Labrador North).

Although prices have not changed since November 15, the opening of Route 510 between Mary's Harbour and Cartwright and favourable ice conditions allow inventories to be replenished for communities in Zone 10a.

The PPPC has been reviewing the existing policy, and is aware of concerns regarding a secure supply of fuel for this region. To act on these concerns, after extensive consultation with various stakeholders, it has been decided to release the freeze on prices for Zone 10a before the scheduled date of June 15, 2004.

Consequently, this means the price for all types of gasoline in this zone will increase by 20.1 cents per litre (cpl), diesel by 7.9 cpl, and home heating fuel by 6.05 cpl.

1.Automotive Fuels - Maximum Retail Pump Prices - Effective May 28, 2004; 
2. Heating Fuels - Maximum Tank Wagon ( or** Tank Farm) Prices - Effective May 28, 2004.

Media contact: Michelle Hicks, Communications. Tel: 1-866-489-8800 or (709) 489-8837.

2004 05 28       10:30 a.m.

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