Charlottetown, Prince Edward Island, January 16, 2009
Island Regulatory and Appeals Commission approved the
following petroleum pricing decisions, effective 12:01 a.m.,
Friday, January 16, 2009:
Gasoline prices will increase by 4.3 cents per
Furnace and stove oil prices will increase by 3.3
prices will increase by 2.4 cpl; and
There will be no change in
propane prices at this time.
Including taxes, pump prices for regular unleaded gasoline at self-serve
outlets will now range from 76.8 cpl to 78.9 cpl.
Despite a relatively substantial drop in crude prices, wholesale refined
product prices continue to increase. While crude prices have fallen in
excess of $7.00 per barrel since the beginning of the year, wholesale
prices for gasoline and furnace oil have increased by 9.2 and 8.8 cpl
respectively over this same period. The situation while appearing
counterintuitive is, nonetheless, a current market reality. Bearing in
mind that wholesale prices are set outside of the Commission's
jurisdiction on a daily basis and that the Commission's posted prices on
PEI are in effect for upwards to 15 days at a time, substantial
wholesale margin losses can accumulate in times such as experienced
during the first two weeks of January. While the Commission attempted
to address this situation on January 10 by increasing posted prices at
the time by 5.0 cpl, sustained wholesale margin erosion has necessitated
the additional adjustments announced today.
The Commission's next scheduled price adjustment will be
on February 1, 2009.
Click here for published prices effective
January 16, 2009