The Island Regulatory and Appeals Commission approved the following petroleum pricing decisions, effective 12:01 a.m., Tuesday, February 24, 2015:
• Furnace and stove oil prices will increase by 4.0 cpl;
• Diesel prices will increase by 4.5 cpl; and
• There will be no change in gasoline or propane prices at this time.
The maximum price for furnace oil will now amount to 96.0 cpl plus tax.
Substantial increases in the wholesale price of furnace oil and diesel over the past week have necessitated this unscheduled price adjustment. The situation is characterized by supply and demand pressures related specifically to these refined products as, over this same period, the price of crude oil futures has actually declined somewhat.
Technical and cold weather related issues this past week have impacted the productive capacity of at least three Atlantic Coast refineries accounting for more than two thirds of the U.S. East Coast’s refined output. This, coupled with the cold weather related increased demand for furnace oil and diesel, has significantly impacted wholesale pricing of these commodities.
Prince Edward Island is not alone in facing rising petroleum product prices. The regulated prices of gasoline, furnace oil and diesel in all four Atlantic Canadian provinces have risen dramatically over the past week. For comparative purposes, regular self-serve gasoline in Halifax is currently 103.7 cpl vs Charlottetown at 103.3 cpl, while maximum furnace oil prices (taxes included) in New Brunswick amount to 113.7 vs 100.8 cpl in Prince Edward Island.
The Commission's next scheduled price adjustment will be on March 1, 2015.