While maximum fuel prices for gasoline have remained stable over the past two weeks despite considerable volatility on the commodity markets, gasoline prices in this province are now reflecting the upward price pressure which has existed in these markets over this period. A price increase of 5.1 cpl on February 15, 2007 has combined with a similar increase at this time to raise gasoline prices to a level which has not been experienced since September 2006.

Demand/supply issues remain prime factors as the heating season crosses over to the peak demand driving season. Gasoline demand has been unseasonably strong for this time of year. Inventories have declined in the short term, and concerns have arisen about the ability to meet peak demand in the coming months. Also international geopolitical factors, including concerns with Iran�s controversial nuclear program and a move by Venezuela�s government to nationalize private oil and gas developments, are contributing to persistent pricing gains in the fuel markets overall. A global stock market plunge Tuesday also spilled over into commodity trading creating fears of stunted economic growth and an impact on fuel demand.