The volatility of international petroleum markets has, for the first time, triggered the mid-month price adjustment mechanism adopted by the Island Regulatory and Appeals Commission in the fall of 2003.
The Commission announced today that wholesalers have been authorized to increase the gasoline prices in their dealer and consumer schedules by 5.0 cents per litre (cpl). Effective May 15, 2004 the average maximum pump price of regular unleaded gasoline at self-serve outlets will be 90.3 cpl.
Gasoline pricing adjustments become effective at 12:01 a.m. on Saturday, May 15, 2004.
The Commission noted that continuing geopolitical instability combined with sustained high demand and refinery capacity issues in North America have resulted in record high petroleum industry input costs. 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.
Mid-month price adjustments will occur when average product input costs increase or decrease by 4.0 cents per litre from the beginning of the monthly price adjustment period. During the last two-week period, average input costs increased by a full 7.0 cents per litre.
Commission Chair, Moe Rodgerson, noted that a reprieve from escalating gasoline prices is not likely to occur in the short term. “Industry analysts around the world are united in the view that petroleum prices will remain at record levels for the next number of weeks”. Rodgerson noted that the Commission will review prices within the next two weeks and will, at the time, make further adjustments as necessary for effect on June 1.
For additional information, contact Donald G. Sutherland, Island Regulatory and Appeals Commission, at (902) 892-3501.