Government Services
April 12, 2007The following is being
distributed at the request of the Public Utilities Board�s Petroleum
Pricing Office (PPO):
Maximum Gasoline Prices Increase; Mixed
Results for Others
The Public Utilities Board, through its
Petroleum Pricing Office, will make its scheduled biweekly pricing
adjustment effective 12:01 a.m. Thursday, April 12, 2007 in Newfoundland
and Labrador (NL), except in regions where a price freeze is in effect.
The maximum prices for each of the fuels under regulation will change as
follows:
- All types of gasoline will increase by 3.5/3.6 cents per litre (cpl) �
depending on the HST rounding impact in a particular pricing zone;
- Ultra low sulphur diesel in Newfoundland will rise by 0.2/0.3 cpl,
while low sulphur diesel in Labrador will decrease by 0.5 cpl;
- No. 2 blend furnace oil will move upward 0.03 cpl, and stove oil will
decrease by 0.40 cpl; and,
- Residential propane used for home heating purposes will be lowered by
0.5 cpl.
Maximum gasoline prices in this province, which were last changed on
March 29, 2007, have reached their highest level so far this year, and
are on par with prices of a year ago.
Geopolitical events, such as those occurring in Iran (the second largest
supplier in the Middle East), have resulted in upward pressure on global
petroleum prices. Also demand/supply issues remain important elements in
the market value of petroleum products at this time of year,
particularly as refiners boost the production of gasoline over heating
fuels. U.S. refinery output has yet to peak due to scheduled maintenance
shutdowns or damage from unplanned outages, thus slowing production.
Analysts have stated that gasoline supplies in the near term are
currently in a shortfall position and may not be sufficient to meet
expected demand. Distillate (furnace/stove oil and diesel) supplies have
tightened, but improving weather conditions are expected to lower
consumption for heating oil, while diesel demand remains strong.
Given these circumstances and the fact that gasoline prices
traditionally rise in the lead-up to the summer driving season, there is
yet no clear indication as to what consumers throughout North America
can expect in the weeks ahead. The Board will continue to monitor the
various marketplaces (global, international and national) and set
regulated maximum prices based on its established methodology to ensure
an adequate and continuous supply of petroleum products throughout NL.
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Media contact:
Michelle Hicks,
Communications.
Tel.: 1-866-489-8800, 489-8837.
E-mail: mhicks@pub.nl.ca
Web site: www.pub.nl.ca
