The Island Regulatory and Appeals Commission announced today that wholesalers have been authorized to decrease prices in their dealer and consumer schedules by 2.5 cents per litre (cpl) on gasoline, by 1.1 cpl on diesel and by 1.6 cpl on furnace fuel and stove oil, effective 12:01 a.m. Thursday, June 1, 2006.
Including related tax calculations, pump prices for regular unleaded gasoline at self-serve outlets will now range from 109.9 cents per litre to 111.5 cents per litre.
In addition, Irving Oil Marketing Limited received approval to increase by .6 cpl and Superior Propane Inc. received approval to increase by .3 cpl all propane prices contained in their respective propane pricing schedules based on increased costs.
In announcing the price changes, the Commission indicated that the price decreases are the result of a continued softening of market prices of world crude and refined products as observed on average over the past two weeks. Commission Chair, Moe Rodgerson indicated that favourable U.S. domestic inventory builds over the past consecutive four weeks combined with statistical verification of reduced consumer demand has resulted in lower market prices. Given the limited global supply cushion and the market’s sensitivity to geopolitical and production interruption issues, however, Rodgerson says that it remains difficult to predict a pricing trend for the coming summer months.
The Commission’s next scheduled price adjustment will be on June 15th.