Government Services
May 29, 2008The 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. |