Island, October 14, 2004 —
Record high international oil prices are impacting the Island market,
resulting in a mid-month price adjustment for some fuels.
Regulatory and Appeals Commission announced today that wholesalers have
been authorized to increase the prices for diesel fuel, furnace fuel and
stove oil in their dealer and consumer schedules by 3.0 cents per litre
(cpl) effective at 12:01 a.m. on Friday,
October 15, 2004. The reduced seasonal demand for gasoline products
has tempered price spikes so the price for gasoline will not be adjusted
at this time.
authorizing the increases, the Commission noted that world energy prices
remain volatile, oil supply and product demand are closely matched, and
therefore, even relatively minor changes in supply can have an immediate
impact on prices.
price adjustments occur when average product input costs increase or
decrease by 4.0 cpl from the beginning of the monthly price adjustment
period. During the last two weeks, average input costs for diesel
and furnace fuels increased by approximately 6.0 cpl. In
considering price changes, the Commission is required to strike a
balance between the interests of the consumer and the need for a viable
local petroleum industry. This is the second time this year the
mid-month adjustment has been triggered by rapidly rising international
ago the price for a barrel of crude oil was in the $30.00 range, and
heating fuel on Prince Edward Island averaged 43.8 cpl. Today the
price of a barrel of crude has surpassed the $50.00 mark and the average
price for heating fuel is 61.4 cpl. The Commission's highest
recorded price for heating fuel was 63.5 cpl in March of 2003. The
Commission will continue to review prices, with further price
adjustments, if necessary, effective November 1, 2004.
here for published prices effective October 15, 2004