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Government Services June 21, 2007 The following is being distributed at the request of the Public Utilities Board�s Petroleum Pricing Office (PPO): Maximum Gasoline Prices Drop; Heating Fuels Up Slightly The Public Utilities Board, through its Petroleum Pricing Office, has set the maximum prices of regulated fuels in Newfoundland and Labrador (NL) as per its scheduled biweekly adjustment, except in regions where a price freeze remains in effect. Effective 12:01 a.m. Thursday, June 21, 2007, maximum fuel prices moved as follows: Gasoline prices in Newfoundland and Labrador are on par with last year. Despite this, commodity markets continue to experience considerable volatility, virtually on a daily basis, and the trending of gasoline pricing throughout the summer period remains uncertain. While prices are now undergoing some declines, analysts have suggested this is no clear indication of any specific relief in the foreseeable future. The commodity markets continue to wrestle with the impact of several global events and the ability to meeting growing demand for automotive fuels in particular. Among them: threats of an oil worker strike in Nigeria, Africa�s largest producer and a major U.S. supplier; below-average refinery output that has prevented a significant rebuild in gasoline supplies; Iran�s assertion it (OPEC�s second largest producer) will use oil as leverage against potential U.S. action in the Middle East; and, the continued strength of the Canadian dollar. The board uses prices for refined fuels on the New York Market Exchange (NYMEX), as published daily by Platts US Marketscan, when setting the maximum prices for petroleum products in Newfoundland and Labrador. The one exception is residential propane where Bloomberg�s Oil Buyers Guide is used. The board applies this data on a current basis up to the end of trading the day before the price adjustment and applies its methodology equally, consistently and without discretion whether prices are going up or down. These non-discretionary pricing methods are consistently applied by the board in both its biweekly regular price changes and the use of the interim weekly interrupt criteria, when necessary. Predictions involving the price of petroleum products using other available data sources or incomplete information for the entire pricing period used by the Board may produce different results.
Price Freeze The annual price freeze for Zones 11a (Coastal
Labrador South � Tanker Supplied), 11b (Coastal Labrador South � Drum
Delivery) and 14 (Coastal Labrador North) will remain in effect until
further notice. Ice conditions in these regions have hindered the
complete replenishing of fuel supplies at this time, and as a result,
the board will determine the date of the freeze lift upon an ongoing
review of the situation in consultation with local stakeholders. -30- Media contact: 1. 2007 06 21 12:15 p.m.
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