Record high international oil prices are impacting the Island market, resulting in a mid-month price adjustment for some fuels.
The Island Regulatory and Appeals Commission announced today that wholesalers have been authorized to increase the prices for diesel fuel, furnace fuel and stove oil in their dealer and consumer schedules by 3.0 cents per litre (cpl) effective at 12:01 a.m. on Friday, October 15, 2004. The reduced seasonal demand for gasoline products has tempered price spikes so the price for gasoline will not be adjusted at this time.
In authorizing the increases, the Commission noted that world energy prices remain volatile, oil supply and product demand are closely matched, and therefore, even relatively minor changes in supply can have an immediate impact on prices.
Mid-month price adjustments occur when average product input costs increase or decrease by 4.0 cpl from the beginning of the monthly price adjustment period. During the last two weeks, average input costs for diesel and furnace fuels increased by approximately 6.0 cpl. 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. This is the second time this year the mid-month adjustment has been triggered by rapidly rising international prices.
One year ago the price of a barrel of crude oil was in the $30.00 range, and heating fuel on Prince Edward Island averaged 43.8 cpl. Today the price of a barrel of crude has surpassed the $50.00 mark and the average price for heating fuel is 61.4 cpl. The Commission’s highest recorded price for heating fuel was 63.5 cpl in March of 2003. The Commission will continue to review prices, with further price adjustments, if necessary, effective November 1, 2004.
For additional information, contact Maurice Rodgerson at (902) 892-3501.