Government Services
October 25, 2007The following is being distributed at the request of
the Public Utilities Board�s Petroleum Pricing Office (PPO):
Maximum Fuel Prices Increase
The Public Utilities Board, through its Petroleum
Pricing Office, set the new maximum fuel price for Newfoundland and
Labrador (NL) effective 12:01 a.m. Thursday, October 25, 2007, as per
its scheduled biweekly adjustment.
As a result of the average of market-pricing data from
October 10-23, 2007, maximum fuel prices in NL will move in the
following manner:
All types of gasoline will increase 1.5/1.6
cents per litre (cpl) � depending on the HST rounding impact in
a particular pricing zone;
Ultra low sulphur automotive diesel will rise
by 1.2/1.3 cpl;
Furnace/stove oil will move upward by 1.40
cpl; and,
Residential propane will increase 2.1 cpl.
While crude oil prices continue to fluctuate at record
levels, the commodity prices for refined fuels used by the board to set
maximum prices for petroleum products in NL have not been affected to
the same degree. The strength of the Canadian versus the U.S. dollar is
one component of the regulated pricing formula that is currently working
to the benefit of consumers although other influences on the commodity
markets have served to increase prices for petroleum products overall.
Market demand/supply remain one of the central
influences with many analysts indicating that gasoline inventories are
currently at the lower end of the average range for this time of year.
Distillates (automotive diesel and furnace/stove oil) are currently in
the upper end of the average range tempered by growing apprehension that
inventories will be hard-pressed to meet peak heating demands throughout
the coming winter months. Other international events impacting market
prices for petroleum products include a slowdown in global economic
growth, particularly in the U.S., as well as instability in the Middle
East, specifically the resignation of Iran�s chief nuclear negotiator
and escalating tensions between Turkey and Iraq, which may lead to fuel
supply disruptions.
Fuel prices in this province so far this year were
highest in April/May; however, all products are currently tracking above
year-ago levels.
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