News Releases
Government Home Search Sitemap Contact Us  

Government Services
May 29, 2008

The following is being distributed at the request of the Public Utilities Board�s Petroleum Pricing Office (PPO):

Interruption Necessary for Maximum Furnace, Stove Oil Prices

The criteria for the Public Utilities Board�s interruption formula (IF) were met for furnace and stove oil resulting in an increase of 4.24 cents per litre (cpl) to their maximum prices effective 12:01 a.m. Thursday, May 29, 2008.

There will be no changes to maximum prices for other regulated fuels or in areas of the province where prices are frozen. Maximum prices for all types of gasoline, automotive diesel and residential propane used for home heating purposes, last established May 22, 2008, will remain in effect.

All refined fuel products monitored by the board experienced increases this past week due to extremely sensitive commodity markets; however, only furnace and stove oil moved enough to trigger an interruption. While this is considered to be the off-peak demand season for heating fuels, the demand for distillates (which includes furnace, stove oil and diesel) remains strong. This is especially the case in China (second only to the U.S. in energy use) where imports were increased to assist in the relief effort for the recent massive earthquake, as well as to ensure sufficient supplies are available for the Olympics in August.

This is also considered to be the time of year refiners rebuild their stockpiles in preparation for the colder months. Instead, inventories have been stagnant or in a state of decline. Events affecting supply are also placing upward pressure on fuel prices, including a resurgence of violence in Nigeria, which shut down more of its production and output, and reports of a slump in production in Mexico.

Barring any extraordinary events the next scheduled price change is Thursday, June 5, 2008.

- 30 -

1. Heating Fuels - Maximum Tank Wagon (or ** Tank Farm) Prices - Effective May 29, 2008

Media contact:
Michelle Hicks
Communications
1-866-489-8800, 489-8837
mhicks@pub.nl.ca

2008 05 29                                                     10:40 a.m.


SearchHomeBack to GovernmentContact Us


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