The Public Utilities Board, through its Petroleum Pricing Office, adjusted maximum fuel prices throughout Newfoundland and Labrador (NL) as per its biweekly schedule effective 12:01 a.m.Thursday, August 2, 2007.

The resulting changes for each fuel product were as follows:

Commodity gasoline prices experienced an overall downturn during this pricing period (July 18-31, 2007) on news that U.S. refinery output had steadily increased to its highest level in 10months, and as a result, improving inventories were expected to satisfy current demand. The current price change reflects the largest decrease for gasoline seen since this past January, whenprices were lowered 5.3 cpl.

Factors that have affected fuel prices, both positively and negatively, over the past two weeks include:

The board notes public controversy often accompanies predictions of price decreases in petroleum products, particularly gasoline, which subsequently prove incorrect. This also happens following reports of price declines in other regulated jurisdictions which are not simultaneously reflected in this province because of differing regulatory methodologies. This occurred last week when market data figures fell short of triggering the board�s interruption formula. The basis of regulating maximum prices of petroleum products in NL was established in 2001 and has largely remained intact since. This methodology is applied consistently and without discretion whether commodity prices are going up or down, and serves to strike an appropriate balance between consumers and retailers/wholesalers working to supply these products throughout all regions of the province.