The Island Regulatory and Appeals Commission announced today that wholesalers have been authorized to decrease prices in their dealer and consumer schedules by 4.6 cents per litre (cpl) on gasoline, by 2.1 cpl on diesel and by 2.5 cpl on furnace fuel and stove oil, effective 12:01 a.m. Monday, May 15, 2006.
Accordingly, pump prices for regular unleaded gasoline at self-serve outlets will now range from 113.3 cents per litre to 114.9 cents per litre.
There will be no change in propane prices at this time.
In announcing the price changes, the Commission indicated that the price decreases are the result of falling world crude and refined products market prices. Commission Chair, Moe Rodgerson noted that since May 2, crude prices have fallen by approximately $2.50 per barrel for a variety of reasons including improved refining capacity in the U.S., a favourable build in U.S. domestic petroleum inventories and a distinctly measurable reduction in consumer demand. Rodgerson cautions, however, that the market remains extremely sensitive to geopolitical and production related issues and, hence, it is extremely difficult to predict how prices will play out over the coming summer months.
The Commission’s next scheduled price adjustment will be on June 1st.