Government Services
February 8, 2007The
following is being distributed at the request of the Public Utilities
Board’s Petroleum Pricing Office (PPO):
Interruption Formula
Criteria Met for Automotive Diesel
The Public Utilities Board, through its
Petroleum Pricing Office, was required to adjust maximum automotive
diesel prices in Newfoundland and Labrador (NL) effective 12:01 a.m.
Thursday, February 8, 2007 because the criteria for the use of the
interruption formula (IF) were met.
Ultra low sulphur diesel prices in Newfoundland and low sulphur diesel
in Labrador increased by 4.8/4.9 cents per litre (cpl) – depending on
the rounding impact of the HST in a particular pricing zone. Though the
market prices for the other fuel products under regulation also
experienced considerable upward movements overall, the IF criteria were
not realized for these products and there will be no changes to their
maximum prices at this time.
Diesel belongs to the same family of fuels (distillates) as furnace and
stove oil, and while the market-pricing behaviour for each fuel may be
influenced by many of the same factors, each product is not necessarily
influenced to the same extent. Demand for the higher quality automotive
diesel has remained unseasonably strong, which in turn placed additional
pressure on this product causing it to meet the IF criteria. This
pricing session (January 31 to Februay 6) also saw concerns on the
commodity markets heighten about what affect the recent onset of
Arctic-like temperatures throughout North America will have on existing
distillate supplies, despite reports of above-average inventories.
Barring any unforeseen circumstances, the Board’s next scheduled price
change will occur Thursday, February 15, 2007.
BACKGROUNDER
Regulation schedule: The board currently sets maximum prices for
petroleum products every two weeks. Every Thursday following a scheduled
adjustment, consumers will experience either no change in price or a
change triggered by the criteria being met for the interruption formula
(IF).
More information about the IF or any other aspect of fuel-pricing
regulation can be found on the board’s Web site at
www.pub.nl.ca.
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Automotive Fuels – Maximum Retail Pump
Prices – Effective February 8, 2007
Media contact:
Michelle Hicks
Communications.
1-866-489-8800, 709-489-8837
mhicks@pub.nl.ca
2007 02 08
10:00 a.m. |