Charlottetown, Prince Edward Island,
December 1, 2013
The Island Regulatory and Appeals Commission approved
the following petroleum pricing decisions, effective 12:01 a.m.,
Sunday, December 1, 2013:
Gasoline prices will increase by 2.0 cents per litre
Furnace and stove oil prices will increase by 4.0
Diesel prices will increase by 4.0 cpl; and
Propane prices will increase by 4.6 cpl for Superior
Propane, by 4.1 cpl for Irving Energy Distribution and Marketing and
by 4.3 cpl for Kenmac Energy Inc.
Including adjustments for taxes, pump prices for regular
unleaded gasoline at self-serve outlets will now range from 130.6 cpl to
The maximum price for furnace oil will now amount to
111.8 cpl plus tax.
Wholesale petroleum product prices have increased
significantly since the Commission’s last adjustment on November 1st
(Note: no change in prices occurred on Nov 15th).
Specifically, the wholesale rack price over the past month has increased
by 3.5 cpl for gasoline, by 5.5 cpl for furnace oil and by 4.5 cpl for
A variety of factors have contributed to this situation.
While WTI prices (the crude reference for Western North American crude)
have fallen, Brent crude prices (the predominant pricing determinant
used by East Coast North American refineries) have actually risen over
the past 60 days from $107 to $111 per barrel. Indeed, the gap between
Brent and WTI pricing has grown from $6 per barrel to $19 per barrel
over this same time period.
The reduced capacity of East Coast refineries over the
past two months due to seasonally scheduled maintenance and product
switchover has impacted overall market supply and this, combined with
noted increased demand, has served to create an upward pressure on
A continued growth in the export of diesel and furnace
oil to Europe, Asia and South America, combined with the approach of
colder winter weather, has similarly impacted furnace oil and diesel
It is hoped that with the anticipated imminent return to
normal capacity of refineries in the region, petroleum product
inventories will be allowed to recover and wholesale pricing moderation
will be observed.
The Commission's next scheduled price adjustment will be
on December 15, 2013.
Click here for
published prices effective December 1, 2013