PETROLEUM PRICING ADJUSTMENTS

Charlottetown, Prince Edward Island, October 31, 2003 — The Island Regulatory and Appeals Commission announced today that wholesalers have been authorized to adjust petroleum prices in their dealer and consumer schedules as follows: a decrease of 3.6 cents per litre (cpl) on gasoline, an increase of 1.5 cpl on diesel and an increase of 1.3 cpl on furnace and stove oil.  Effective November 1, 2003, the average maximum pump price of regular unleaded gasoline at self-serve outlets will be 71.9 cpl. 

Irving Oil Limited received approval to decrease, by 1.2 cpl, and Superior Propane Inc. received approval to decrease, by 0.8 cpl, all propane prices contained in their respective propane pricing schedules based on decreased product acquisition costs.

All pricing adjustments become effective at 12:01 a.m. on Saturday, November 1, 2003.

The Commission is also adopting a process that will substantially enhance its ability to address extreme price fluctuations - both decreases and increases - in times of significant market volatility.  IRAC believes the enhancement will better serve both the consumer and the industry. 

The process provides for possible price adjustments mid-month, but only when average product prices have changed by at least 4.0 cents per litre mid-way through the pricing period.  In such cases, and subject to the discretion of the Commission, the adjustment would range from 50%-75% of the indicated differential.  The balance of the adjustment would be addressed in the regular month-end pricing process.

Click here for published prices effective November 1, 2003