Petroleum products price adjustments effective April 15, 2002

World oil prices have risen sharply over the past four weeks amid escalating turmoil in the Middle East and, more recently, Venezuela. This unrest has resulted in the potential risk of supply shortages for global markets. Accordingly, petroleum product prices on the New York Mercantile exchange, which the commission uses as a yardstick for adjustments to base prices in this province, have also increased dramatically. There have been significant price increases of up to 10 cents per litre for petroleum products throughout markets in Canada and the U.S. during this period.

In keeping with past practice, effective 8:00 a.m. on April 15, 2002, the Petroleum Products Pricing Commission will allow fuel price increases based on the adopted model for pricing used by the commission, which considers average daily pricing in the previous month for petroleum products in the world markets. Maximum allowable retail prices are increased as follows:

1) Maximum retail prices for all grades of gasoline will increase by 7.4 cents per litre at the pump, inclusive of all taxes.

2) The maximum price for diesel fuel at the consumer pump level will increase by 4.9 cents per litre inclusive of taxes.

3) Maximum retail prices for both furnace oil and stove oil will increase by 4.1 cents per litre exclusive of applicable HST.

4) The maximum price for propane heating fuel delivered to homeowners' storage tanks will increase by 3.2 cents per litre exclusive of applicable HST.

During the past month, prices in our provincial market would have increased higher than the allowed price adjustments.

These increases are effective for all pricing zones with the exception of those on Labrador Coast where prices have been previously frozen until further notice.

Barring unforeseen developments or unless otherwise deemed necessary by the commissioner, these new maximum prices will remain in effect until May 15, 2002.

Media contact: David Toms, PPPC Research Director, (709) 489-8877 or 1-866-489-8800

2002 04 15                    9:35 a.m.