July 15, 2002
(Government Services and Lands)
The following is being distributed at the request of the Petroleum Products Pricing Commission:
Petroleum Products Pricing Commission regulated prices July 15, 2002
A review of world markets over the past month has resulted in slight changes for fuel prices.
Consumers in Newfoundland and Labrador overall will see a minimal increase in automobile fuel and stove/heating oil effective July 15, while the price of propane will decline.
The Petroleum Products Pricing Commission (PPPC) has determined that, with the exception of zones where prices were frozen, regular unleaded, mid-grade and supreme fuel will increase by 1.1 cents per litre (cpl), and diesel will rise by 0.3 cpl.
In the case of home heating fuel, stove and heating oil experienced a 0.2 cpl increase, whereas propane will decrease by 1.9 cpl.
"It�s important to note that this is the maximum pricing set, and companies still have the freedom to be able to sell below the maximum price as determined by the commission," said George Saunders, Petroleum Products Pricing commissioner. "I think this indicates that prices are generally stable, although slowly edging upwards. We can look for a fairly stable atmosphere in world markets, but they are leaning towards an increase."
According to the commissioner, a combination of recent events over the past month has contributed to this month�s changes. There were a number of unexpected refinery shutdowns, and OPEC announced its decision to continue with reduced output quotas.
The American Petroleum Institute has reported that inventories have fallen by 2.39 million barrels to 214 million barrels in the week prior to July 11 � the cutoff date for the PPPC to regulate prices for this 30-day period.
Unrest in Venezuela, a supplier of petroleum to the United States, has also caused concerns among fuel buyers about shipment disruptions as well as the security of supply.
These, as well as other factors, have led to increases in fuel prices over the past month.
On the provincial scene, the Labrador region, which includes Zone 10a (Mary�s Harbour/Charlottetown), Zone 11 (Labrador South) and Zone 14 (Labrador North), has benefitted from frozen fuel prices since November 15, 2001.
These areas were spared the overall price hikes experienced by other zones, particularly the large increases evident during March and April of this year, because their fuel supply for the winter and summer months was received this past fall.
Deliveries have since resumed, and the price freeze will be lifted during the summer and fall. Variations to world market prices have resulted in a 6.9 cpl increase in regular unleaded fuel, a 6.4 cpl difference for diesel and an adjustment of 1.5 cpl for stove oil for July 15 - August 15, 2002.
"There has been a very long period of a set price in effect," said Mr. Saunders. "During this period, consumers in other parts of Newfoundland and Labrador, as well as throughout the country, have had to endure a number of significant increases. These increases, when factored into the new prices based on supplies being delivered to Labrador, account for the significant increase that now must be sustained in these particular areas."
The commissioner also noted that as the Labrador highway from the Straits is extended, new territory serviced by roads will be opened. People living there can expect to see more reasonable prices being charged for fuel in the future as more storage infrastructure is added, said Mr. Saunders.
At the time of the pricing freeze, stove oil could be purchased for 64 cpl plus HST, while regular unleaded fuel was 99.2 cpl and low sulphur diesel was 96.2 cpl.
The price in Labrador over the next 30 days represents an adjustment that brings the region back in line with world and local market conditions.
It should be noted that Labrador zones 10a, 11 and 14 will again see frozen prices this winter because of their special fuel delivery circumstances.
The PPPC has also addressed the need for recovery of additional costs by suppliers to areas of Zone 5 (described as Springdale and the Baie Verte Peninsula) so that continued delivery to island communities in this jurisdiction might be secured.
As a result, two new sub-zones have been created as of July 15 � Zone 5a (described as Long Island) and Zone 5b (which includes Little Bay Islands).
Media contact: George Saunders, Petroleum
Products Pricing Commissioner, Tel:
Petroleum Products Pricing
Zone 1 � Avalon Peninsula
Zone 2 � Burin Peninsula /
Bonavista Peninsula / Bonavista Bay
Zone 3 � Central Newfoundland / Notre Dame
Bay East / Fogo
Zone 4 � Connaigre Peninsula
Zone 5 � Springdale � Green Bay / Triton
/ Baie Verte Peninsula
Zone 6 � Deer Lake / Corner Brook / Bay of
Zone 7 � Stephenville / Port au Port /
Codroy Valley / Channel Port aux Basques
Sub Zone 7a � Ramea to Grey River
Zone 8 � Northern Peninsula � Gros
Morne National Park to Bellburn�s
Zone 9 � Northern Peninsula
to Englee and St. Anthony
Zone 10 � Labrador
Straits to Mary�s Harbour / Charlottetown
Zone 11 � Coastal Labrador
Zone 12 � Central Labrador
Zone 13 � Western Labrador
Zone 14 � Northern Labrador
Automotive Fuels - Maximum Retail Pump Prices - Effective June 15, 2002
2002 07 15 11:00 a.m.