Order No. P.000114-3

IN THE MATTER of the Petroleum Products Act, R.S.P.E.I. 1988, Cap P-5.1

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IN THE MATTER of an application by IMPERIAL OIL LIMITED for increases of 0.6 cent per litre in the prices of all grades of gasoline contained in its dealer and posted consumer pricing schedules, based on recovery costs related to meeting federal standards regarding benzene content in all grades of gasoline.

Friday, the 14th day of January, A.D., 2000

BEFORE

Ginger Breedon, Vice-Chair
Elizabeth MacDonald, Commissioner

Decision and Order

On 20 July 1999, the Commission received an application from Mr. Kevin M. Koch, Price Analyst-Automotive for Imperial Oil for increases of 0.6 cent per litre in the price of all grades of gasoline in its dealer and posted consumer pricing schedules reflecting the increased cost of producing gasoline according to the new federal regulations for benzene content. By letter dated 5 August 1999, the Commission requested that Imperial Oil provide supporting documentation relating to the additional cost of producing gasoline products to meet the new federal regulations for benzene content.

On 19 August 1999, the Commission received additional information from Imperial Oil Limited to support the requested increase. Following a review of this information and independent data, the Commission on 2 September 1999 sought additional clarification from Imperial. Mr. J. C. Barnes, National Price Co-Ordinator, responded to the Commission on 10 November 1999. Clarification relating to present compliance of these new federal regulations was requested on 16 December 1999, with a response dated 23 December 1999 received by the Commission on 4 January 2000 which indicated that Imperial is presently in compliance.

The Commission gave notice to the public by way of advertisement in the local press and on the Commission’s public web site at www.irac.pe.ca with a deadline of 12 January 2000 for receipt of submissions. None were received.

The Commission gave further consideration to the application and information provided in the documentation received by the Commission at its meeting on 14 January 2000, and it was determined that in view of the new regulatory requirements of the federal government, it would be just and reasonable to authorize the requested increase of 0.6 cent per litre in the prices of all grades of gasoline contained in Imperial’s dealer and posted consumer pricing schedules, effective 12:01 a.m. on 18 January 2000, and ordered these increases in accordance with the attached Order.

THE COMMISSION HEREBY ORDERS AS FOLLOWS:

1.    THAT the following wholesale tank truck prices are to be charged dealers in Prince Edward Island supplied by Imperial Oil Limited, effective 12:01 a.m. on Tuesday, 18 January 2000:

PRODUCT

 CENTS PER LITRE
(INCLUDING Federal Excise
and Provincial Taxes)
Regular Unleaded Gasoline

54.2
Mid-Grade Unleaded Gasoline 56.2
Premium Unleaded Gasoline 58.1
Low Sulphur Diesel 54.0

2. THAT the following wholesale posted consumer tank truck prices (which prices do not include Provincial tax or seven per cent G.S.T.) shall be in effect in the Province of Prince Edward Island for the wholesaler Imperial Oil Limited, effective 12:01 a.m. on Tuesday, 18 January 2000:

PRODUCT

 CENTS PER LITRE
(INCLUDING Federal
Excise Tax)
Regular Unleaded Gasoline

48.8
Mid-Grade Unleaded Gasoline 50.8
Premium Unleaded Gasoline 52.7
Diesel 44.2
Low Sulphur Diesel 45.2
Stove Oil 42.5
Furnace Oil 39.2

3. THAT the above dealer prices, with seven per cent G.S.T. added, and the above posted consumer prices, with Provincial Tax (where applicable) and seven per cent G.S.T. added, shall be indicated on all documents accompanying deliveries of these products.

4. THAT the prices quoted in this Order, with adjustments resulting from tax changes only, shall remain in effect until otherwise ordered by the Commission.

DATED at CHARLOTTETOWN this 14th day of JANUARY, A.D., 2000.

BY THE COMMISSION:

Vice-Chair

Commissioner