Petroleum Pricing

The Island Regulatory and Appeals Commission announced today the following petroleum pricing decisions, effective May 15, 2008:

• Gasoline prices will increase by 6.0 cents per litre (cpl);

• Furnace oil and stove oil prices will increase by 10.0 cpl;

• Diesel prices will increase by 11.0 cpl; and

• There will be no change in propane prices at this time.

Including taxes, pump prices for regular unleaded gasoline at self-serve outlets will now range from 129.7 cpl to 131.3 cpl.

A sustained escalation in global crude prices has resulted in the average price increasing by over $13.00 per barrel since May 1st and double the average price a year ago. A variety of factors have combined to sustain upward pressure on product prices including:

• Geo-political tensions in Nigeria, Iraq and Venezuela.

• A weak U.S. dollar.

• Oil production interruptions in Russia, Mexico and Europe.

• A continued strong demand for distillate products in both Europe and South America.

• Continued growth in consumption in China, Southeast Asia and the Middle East.

The Commission’s next scheduled price adjustment will be on June 1, 2008.

Media Contact: Allison MacEwen