Island, March 31, 2006 —
The Island Regulatory
and Appeals Commission announced today that wholesalers have been
authorized to increase prices in their dealer and consumer schedules by
8.5 cents per litre (cpl) on gasoline, by 1.0 cpl on diesel and by 3.0
cpl on furnace fuel and stove oil, effective 12:01 a.m. Saturday, April
prices for regular unleaded gasoline at self-serve outlets will now
range from 107.5 cents per litre to 109.1 cents per litre.
In announcing the
price increases, the Commission indicated that a continued rise in world crude and refined product prices over the past two weeks has
necessitated further price adjustments at this time. Specifically,
persistent supply disruptions in the Gulf of Mexico and Nigeria have
effectively reduced global crude supply by up to 1,000,000 barrels per
day. This combined with the continued stand off between the United
Nations and Iran over that country�s nuclear enrichment program and
further gasoline specific supply concerns related to industry ethanol
conversion activities in North American markets have resulted in an
escalation of petroleum commodity prices.
Commission Chair Moe
Rogerson notes that the Commission�s pricing model utilizes an averaging
process and as a result Island pump prices have been significantly below
those observed in neighboring Maritime cities for some time now. Issues
currently facing the market including continued high crude prices,
seasonal demand concerns and impending environmental regulations may
serve to continue upward pressure on gasoline prices, in particular, in
the coming months and as a result the Commission will be monitoring the
situation on a daily basis.
On a more positive
note, the pricing process will allow for a reduction in propane prices
at this time. Irving Oil Marketing Limited received approval to reduce
by 1.9 cpl and Superior Propane Inc. received approval to decrease by
2.3 cpl all propane prices contained in their respective propane pricing
schedules based on decreases in costs.
The Commission�s next
scheduled price adjustment will be on April 15th.
Click here for published prices effective
April 1, 2006