The Island Regulatory and Appeals Commission announced today that pump prices at retail gasoline outlets will increase by 3.6 cents per litre (cpl) effective 12:01 a.m. Saturday, July 1, 2006.
Including related tax calculations, a reduction in the GST to 6%, and an increase in the wholesale cost of gasoline of 4.0 cpl, pump prices for regular unleaded gasoline at self-serve outlets will increase a total of 3.6 cpl and will now range from 113.5 cpl to 115.1 cpl. There will be no change in wholesale pricing of diesel, furnace fuel or stove oil at this time. However, approved consumer prices will reflect the GST reduction.
In addition, Irving Oil Marketing Limited received approval to increase by .6 cpl and Superior Propane Inc. received approval to increase by .4 cpl all propane prices contained in their respective propane pricing schedules based on increased costs.
In announcing the price changes, the Commission indicated that the price increase for gasoline reflects a dramatic increase in world oil prices observed over the past few days. Commission Chair Moe Rodgerson indicated that, over the past nine trading days, the price of crude has risen by almost $4.00 per barrel. Interruptions in U.S. refinery output and continued geopolitical uncertainty have contributed to the present situation as well as increasing consumer demand despite current price levels.
The Commission’s next scheduled price adjustment will be on July 15th.