The Island Regulatory and Appeals Commission announced today that wholesalers have been authorized to increase petroleum prices in their dealer and consumer schedules by 8.5 cents per litre (cpl) on gasoline, 2.7 cpl on diesel fuel and 3.5 cpl on furnace and stove oil. Effective September 1, 2005, pump prices for regular unleaded gasoline at self-serve outlets will range from between 109.6 cents and 111.6 cents per litre.
In addition, Irving Oil Limited received approval to increase, by 1.1 cpl, and Superior Propane Inc. received approval to increase, by 2.3 cpl, all propane prices contained in their respective propane pricing schedules based on increases in costs.
All pricing adjustments become effective at 12:01 a.m. on Thursday, September 1, 2005.
The above prices, determined by the Commission yesterday, do not reflect the devastation that Hurricane Katrina has had on the oil producing and refining facilities in the Gulf of Mexico and the resulting impact that devastation has had—and will continue to have—on international oil prices in the coming weeks. Late yesterday through to today saw refined product prices on international markets increase by some 17 cents a litre on regular unleaded gasoline with somewhat lesser increases on home heating oil and diesel fuel. These increases have been felt today in Canada where pump prices in some areas have increased by 20 cents a litre with further increases expected. Local market resellers and wholesalers have advised the Commission that, based on changes that occurred last night, the Commission’s announced increase will still result in substantial losses at the retail level.
As a result of these unprecedented events, the Commission will be reviewing product pricing on a daily basis and will institute prices changes on a more frequent basis. Consumers in Prince Edward Island should expect further price increases in the coming days.