June 15, 2002
(Government Services and Lands)


The following is being distributed at the request of the Petroleum Products Pricing Commission:

1. Petroleum Products Pricing Commission sets regulated maximum pump prices for all brands of gasoline effective June 15, 2002.

Petroleum prices for all products except propane will decrease again this month. All brands of gasoline, diesel fuel, and home heating fuels will drop for the period June 15 to July 15, 2002.

The maximum pump price for all brands of gasoline is going down across the province by an average of 1.6 cents per litre (cpl) from the levels established in May of this year. Diesel fuel will see a decline of 1.3 cpl and home heat fuels, including stove oil and furnace oil will see declines of 0.8 cpl.

Based on the average of Platt�s prices for the past 30 days, this represents fairly the decline in prices being experienced on the world markets, where inventories are healthy, and increased production by some countries is forecast. As always, the commission takes into consideration the other cost factors relating to transportation, storage, and distribution costs that impact on the province�s petroleum markets.

This reduction is notable in that prices for gasoline and diesel fuel are now at their lowest level for the month of June since 1999. With the approaching summer tourist season, it is even more significant as more people travel during the summer months.

Propane used for heating purposes will increase by 0.3 cpl. Demand for propane in the earlier part of the month placed a greater strain on available supply, but this is now easing as of the past week. Hence, the overall effect is only a very slight increase.

It is the intention of the Petroleum Products Pricing Commission to monitor closely all changes in pricing of petroleum products during the next 30 days. Based on information we are receiving from Bloomberg, if the current trend continues, prices should remain stable throughout the summer.

2. Petroleum Products Pricing Commission to review Labrador coastal prices during the coming month.

During the period June 15 to July 15, 2002, prices of gasoline and heating fuel for the coastal zones 11 and 14 of Labrador, which have been frozen since November 15, 2001, will be subject to review. At that time, prices in these zones will be adjusted based on the variances that have occurred and impacted on the province during this 30-day period.

Up to the present time, supplies of new product have not been shipped into this region.

Prices will continue to be regulated and adjusted for these zones until the winter season of 2002 is in effect for this year. At the time of establishing prices last winter, the price of stove oil in both zones for the winter was 64 cpl. plus HST, for regular unleaded gasoline was 99.2 cpl., and low sulphur diesel was 96.2 cpl including taxes.

3. Resumption of fact-finding tours to commence this summer.

The commission will be undertaking a resumption of fact-finding tours during the coming summer. Tours of the Northern Peninsula, the southwest coast, and the Avalon Peninsula will be the thrust of this initiative this year. During these visits, all agents, retailers, and wholesalers in the regions will be visited and given an opportunity to make their concerns known to the commissioner.

Media contact:

George Saunders, Commissioner
Petroleum Products Pricing Commission
(709) 489-8877

1. Automotive Fuels - Maximum Retail Pump Prices - Effective June 15, 2002
2. Heating Fuels - Residential Propane - Maximum Tank Wagon Prices - Effective June 15, 2002
3. Heating Fuels - Maximum Tank Wagon (or ** Tank Farm) Prices - Effective June 15, 2002

2002 06 15                            10:10 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