The Island Regulatory and Appeals Commission approved the following petroleum pricing decisions, effective 12:01 a.m., Thursday, September 1, 2016:
• Gasoline prices will increase by 1.0 cent per litre (cpl);
• There will be no change in Furnace and Stove Oil prices:
• Diesel prices will increase by 1.0 cpl; and
• Propane prices will decrease by 2.0 cpl for Irving Energy Distribution and Marketing, by 1.8 cpl for Kenmac Energy Inc. and there will be no change for Superior Propane.
Pump prices for regular unleaded gasoline at self-serve outlets will now range from 101.0 cpl to 102.1 cpl. Maximum before tax propane prices will now range from 67.2 cpl to 68.4 cpl.
The maximum price for furnace oil will continue to amount to 70.2 cpl, plus tax.
The wholesale price of gasoline has been rising steadily over the past two weeks. Tropical storm and flood-related refinery interruptions in the Southern United States, which houses the US’s largest refineries, reduced the amount of gasoline being refined by upwards of 2 million barrels per day. These interruptions coupled with a marked increase in the demand for gasoline in the United States has driven up the market price. The market price for gasoline in the United States is the base market price that is used for wholesale pricing of gasoline in Canada.
PEI is not alone in facing these market pressures.
Prior to today’s adjustment PEI had one of the lowest prices for gasoline in Canada.
Even with this increase announced today, the PEI pump price for self-serve gasoline of 101 cpl is one of the lowest in the region. Halifax is at 103.3 cpl and the current national average is 105.9 cpl.
The Commission's next scheduled price adjustment will be on September 15, 2016.