Government Services
November 5, 2009The
following is being distributed at the request of the
Public Utilities Board�s Petroleum Pricing Office (PPO):
Maximum Fuel Prices
Adjusted
Implementation of seasonal furnace oil/ jet blend, and
suspension of
maximum price adjustments for Zones 11a and 14 in
Labrador
Effective 12:01 a.m. Thursday,
November 5, 2009, in accordance with the Public
Utilities Board�s biweekly pricing adjustment, maximum
fuel prices in Newfoundland and Labrador changed as
follows:
All types of gasoline
decreased by 1.0 or 1.1 cents per litre (cpl) �
depending on the HST rounding impact;
Ultra low sulphur diesel
decreased by 0.9 or 1.0 cpl � also due to HST
rounding;
No. 2 blend furnace oil
increased by 0.41 cpl;
Stove oil decreasd by 0.36 cpl;
and,
Residential propane use for
home heating purposes increased by 4.1
cpl.
These maximum prices reflect the
change in the average benchmark price of the products
since the last pricing period. As an example, the
average benchmark price for gasoline, as tracked on the
New York Mercantile Exchange (NYMEX) and converted to
Canadian dollars decreased over the seven-day period by
0.96 cpl, resulting in a 1.1 cpl decrease, accounting
for taxation and rounding. The commodity market
movements for the period were offset to some extent by a
lower Canadian dollar. Since fuel on the commodity
markets is priced in U.S. currency, a lower Canadian
dollar means it is more expensive to purchase these
products.
In addition to the regular maximum
price adjustments occurring at this time, the following
seasonal changes also will take place:
Implementation of the
blending of furnace oil with jet fuel, and,
Suspension of maximum
price adjustments for Zones 11a and 14 in
Labrador for the winter months.
The increase in the price of furnace
oil is the result of the annual implementation of the
jet blend component to furnace oil (known as No. 2
blend). This seasonal adjustment reflects the costs
associated with mixing 75 per cent jet fuel with 25 per
cent furnace oil to improve this fuel�s performance over
the winter months.
As previously announced by the board
in a media release issued September 17, 2009, there have
been changes made to the board�s policy with respect to
the Labrador regions that will see their maximum price
adjustments suspended for the winter. At this time, the
suspension of maximum price adjustments will affect only
Zones 11a
(Coastal Labrador South � tanker supplied) and 14
(Coastal Labrador North), and will no longer be
implemented in Zones 11 (Labrador South � Lodge Bay /
Cartwright) and 11b (Coastal Labrador South - drum
delivery). This action takes place each year at this
time to reflect the difficulties encountered in
supplying fuels to affected zones during the winter
months, and remains in effect until deliveries resume to
these zones in the spring of the year.
The next scheduled price change will
occur Thursday, November 19, 2009.
- 30 -
1. Automotive Fuels � Maximum Retail
Pump Prices � Effective November 5, 2009
2. Heating Fuels � Maximum Tank Wagon
(or ** Tank Farm) Prices � Effective
November 5, 2009
Media contact:
Michelle Hicks
Communications
1-866-489-8800, 489-8837
Email: mhicks@pub.nl.ca, or visit the
board�s website: www.pub.nl.ca.
2009 11 05 9:25 a.m.
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