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The benchmark price for gasoline saw a decrease this week but consumers on the island of Newfoundland will pay more for gasoline, heating oil and other fuels.
Gasoline is up by 4.1 cents a litre on the island and furnace oil has increased by 3.3 cents a litre for island customers.
Meanwhile, consumers in Labrador will see a decrease in the price of gasoline, diesel and furnace oil.
The price increase for island customers is due to the province’s Public Utilities Board (PUB) approval of a request from North Atlantic Marketing Limited (NARL-Marketing) for an interim increase on wholesale markups to reflect the additional costs of importing those fuels to the island.
NARL-Marketing, the distribution company for fuels produced at the refinery in Come By Chance. The refinery has not operated since March and for the past six months the company has been importing fuel from other sources, adding to their costs with fuel storage and shipping.
In its application to the PUB, NARL-Marketing asked that the wholesale markups be applied across all island pricing zones to ensure continued viability for suppliers and a reliable supply of fuels for the island.
The PUB approval resulted in a five-cent-a-litre increase for gasoline and a four-cent-a-litre increase for diesel fuel, furnace heating oil and stove oil.
In its press release announcing the fuel price changes, the PUB noted the benchmark price for all products saw a decrease this week.
“As an example, the average benchmark price for gasoline, as tracked on the New York Mercantile Exchange (NYMEX) and converted to Canadian dollars, decreased over the period by 1.45 cents per litre (cpl), resulting in a decrease of up to 1.7 cpl, accounting for taxation and rounding,” said the PUB.
That means customers in Labrador pricing zones will pay less for fuels this week.
The NARL-Marketing application for an across-the-board wholesale markup did not apply to that zone.
The fuel price changes for the province this week are:
- • all types of gasoline motor fuel on the Island will increase by up to 4.1 cents per litre (cpl);
- • all types of gasoline motor fuel in Labrador will decrease by up to 1.7 cpl;
- • diesel motor fuel on the Island will increase by up to 3.3 cpl;
- • diesel motor fuel in Labrador will decrease by up to 1.4 cpl;
- • furnace oil heating fuel will increase by 3.17 cpl;
- • stove oil heating fuel on the Island will increase by 2.78 cpl;
- • stove oil heating fuel in Labrador will decrease by 1.22 cpl; and,
- • propane heating fuel will increase by 0.5 cpl.
The next scheduled price change by the PUB is next Thursday, Nov. 5.