NLIS 1 April 17, 2006 (Government Services) The following is being distributed at the request of the Public Utilities Board�s Petroleum Pricing Office (PPO): Market-price increases lead to rise in maximum regulated fuel prices Effective 12:01 a.m Saturday, April 15, 2006, the Public Utilities Board, through its Petroleum Pricing Office, made its scheduled mid-monthly adjustment to the maximum prices of regulated fuels in Newfoundland and Labrador (NL), except in areas currently under a price freeze. As a result of heightened and sustained market pricing for refined fuels on NYMEX (the New York Mercantile Exchange) throughout this period, all maximum regulated fuel prices in NL saw increases at that time. Adjustments include: all types of gasoline by 5.2 cents per litre (cpl); automotive diesel by 4.6 cpl; No. 2 blend furnace oil by 2.52 cpl; stove oil by 2.71; and, residential propane used for home heating purposes by 1.4 cpl. Global political tensions, most notably in Iran, as well as the increasing demand for fuel in relation to available supplies, have meant that refined petroleum products, such as automotive and heating fuels, have faced significant upward pressures, with current prices well above last year�s levels. Individual consumers and many aspects of the economy are being impacted in some form or another by these escalating global commodity prices. These high costs for fuel are not only evident in Canada, but are widespread throughout North America, including the U.S. Unfortunately, many analysts are concerned about the ability of future gasoline inventories to meet summer demand and some analysts are projecting that prices will keep trading upward. Despite current market volatility, the board will continue to monitor and assess daily data to ensure that local prices are in line with the global marketplace and enable a secure supply of fuel products to all areas of our province. FORCES AT WORK Since maximum prices for each regulated fuel were last set in NL, the commodities exchange has seen little relief. Many of the factors affecting refined fuel prices today have been ongoing for some time; however, the longer they remain unresolved, the more anxiety they seem to impose on fuel prices. The market prices of gasoline and home heating fuel products are affected by seasonal shifts. At this time of year, refineries generally prepare for the upcoming peak driving season, and shift production from the winter�s heating fuels to gasoline. Distillate inventories, which include diesel and furnace/stove oil, have declined in recent weeks, though they remain above the average range for this time of year. Demand is expected to recede as temperatures rise; however, market prices continued to climb because of many other forces at play. Propane inventories have lowered to the middle of the average range, and demand has curbed with the onset of warmer temperatures. Listed are several of the events that have contributed to pricing sensitivity for refined fuels traded on NYMEX: 1. Automotive Fuels � Maximum Retail Pump
Prices � Effective April 15, 2006 Media contact: Michelle Hicks, Communications. 1-866-489-8800 or (709) 489-8837 2006 04 17 9:55 a.m. |
|
All material copyright the Government of Newfoundland and Labrador. No unauthorized copying or redeployment permitted. The Government assumes no responsibility for the accuracy of any material deployed on an unauthorized server. Disclaimer/Copyright/Privacy Statement |