NLIS 3
September 13, 2005
(Government Services)
The following is being distributed at the
request of the Public Utilities Board�s Petroleum Pricing Office (PPO):
Gasoline prices further decreased
Effective 12:01 a.m. Tuesday, September 13, 2005,
the Public Utilities Board�s Petroleum Pricing Office (PPO) will decrease the
maximum price of gasoline by 10.4 cents per litre (cpl) in Newfoundland and
Labrador.
Because of the continuing downward volatility in world markets, the PPO is
applying an early adjustment to maximum prices for gasoline that would normally
be adjusted on the 15th of the month.
There will be no change at this time in the maximum prices of the other
petroleum products, which include diesel, furnace/stove oil and residential
propane for home heating purposes. These adjustments will be made as per the
regular schedule on Thursday, September 15.
The reason for this early adjustment is to provide consumers with immediate
reduced maximum prices for gasoline consistent with the recent extraordinary
drop in New York Mercantile Exchange (NYMEX) market prices following a spike
some two weeks ago when oil and fuel supplies were disrupted by Hurricane
Katrina. The decrease in the maximum price of gasoline of 10.4 cents per litre (cpl)
now brings prices down to a level where pricing regulation in Newfoundland and
Labrador may be in a position to return to its normal adjustment pattern.
David Toms, PPO director (acting), noted the board is now responding in the same
immediate fashion to extraordinary price decreases on behalf of consumers as it
did to price increases in the wake of Hurricane Katrina, which threatened fuel
shortages and continuity of oil supplies for the industry. One of the principles
of sound regulation is to balance the interests of all stakeholders in a fair,
equitable and responsive manner.
The price for gasoline throughout North America and European markets still
remains higher than those prices in effect prior to the hurricane. The price of
gasoline and other fuels in the immediate to long term remains unclear and the
market situation continues to be somewhat unsettled.
The board will monitor all events impacting prices for petroleum products in
Newfoundland and Labrador and take whatever action is necessary in the interests
of its stakeholders. The board is intent, however, at its earliest opportunity,
to return to its normal process of adjusting prices on the l5th of each month
and using its interruption formula for interim adjustments as justified.
1. Automotive Fuels � Maximum Retail Pump Prices � Effective September 13, 2005
Media contact: Michelle Hicks, Communications, 1-866-489-8800, (709) 489-8837
2005 09 13
10:35 a.m. |