The Island Regulatory and Appeals Commission announced today that wholesalers have been directed to decrease petroleum prices in their dealer and consumer schedules by 10.0 cents per litre (cpl) on gasoline, by 3.6 cpl on furnace fuel and stove oil and by 1.3 cpl on diesel effective 12:01 a.m. Wednesday, February 15, 2006.
Pump prices for regular unleaded gasoline at self-serve outlets will now range from 92.3 cpl to 93.9 cpl.
There will be no adjustment in propane prices at this time.
In announcing the price changes, the Commission noted that a number of events over the past two weeks, including reduced global consumption, an easing of geopolitical tensions and favourable domestic North American inventory builds have combined to yield significant reductions in world crude prices which have fallen approximately 9% over the last 14 days. The decreases have correspondingly affected international commodity markets and now allow favourable adjustments to local prices. The Commission noted, however, that commodity markets have been extremely volatile thus far this year and, while the market is currently trending downward, any unfavourable geopolitical or significant weather related event could result in market reaction in the opposite direction.
The Commission’s next scheduled price adjustment will be on March 1st.