Weekly Adjustment of Maximum Prices of Regulated Petroleum Products Pricing
methodology adjustments made to reflect changes to product specifications

Effective 12:01 a.m. Thursday, May 6, 2010, the Public Utilities Board set maximum prices for all regulated petroleum products in all areas of the province, except where maximum price adjustments have been suspended for the winter months.

Maximum fuel prices changed as follows:

• all types of gasoline motor fuel increased by 1.4 or 1.5 cents per litre (cpl) — depending on the HST rounding impact;
• diesel motor fuel will either experience no change or increase by 0.1 cpl on the island, and will increase by 2.3 or 2.4 cpl in most areas of Labrador (see below);
• furnace oil heating fuel increased by 1.08 cpl;
• stove oil heating fuel increased by 1.77 cpl; and,
• propane heating fuel increased by 0.2 cpl.

These maximum prices reflect the change in the average benchmark price of the products over the seven-day period ending Tuesday of this week. As an example, the average benchmark price for gasoline, as tracked on the New York Mercantile Exchange (NYMEX) and converted to Canadian dollars, increased over the period by 1.3 cpl, resulting in a 1.5 cpl increase, accounting for taxation and rounding.

With this adjustment, the pricing methodology for the calculation of the maximum price of furnace oil heating fuel and diesel motor fuel on the island will be adjusted to reflect changes in the specifications of the products supplied in the market. The specific changes are:

• the maximum price of furnace oil heating fuel supplied on the island will be calculated based on 100 per cent No. 2 oil, replacing the blend of 75 per cent jet fuel and 25 per cent No. 2 oil; and,
• the maximum price of diesel motor fuel supplied on the island will be calculated based on 100 per cent ULSD (ultra low sulphur diesel), replacing the blend of 75 per cent ULS Kero (ultra low sulphur kerosene) and 25 per cent ULSD.

As there is no change in the specification of the products supplied to the Labrador market, the methodology used to calculate maximum prices in Labrador will not be changed at this time.

The next scheduled price change is Thursday, May 13, 2010.

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Media contact:
Michelle Hicks
Communications
1-866-489-8800, 489-8837
mhicks@pub.nl.ca or visit the board's website: www.pub.nl.ca

1. Automotive Fuels - Maximum Retail Pump Prices - Effective May 6, 2010.
2. Heating Fuels - Maximum Tank Wagon (or**Tank Farm) Prices - Effective May 6, 2010.

2010 05 06                        10:35 a.m.