Order P.921027 - Petroleum - Petro-Canada - Consumer Gas Prices (Oct. 27/92)

Order No. P.921027

IN THE MATTER of the Petroleum Products Act, R.S. P.E.I. 1988, Cap P-5.1

- and -

IN THE MATTER of an application filed by PETRO-CANADA for an increase of 0.9 cent per litre in its posted consumer tank truck prices.

Tuesday, the 27th day of October, A.D., 1992

BEFORE

Linda Webber, Chairman
John Blakney, Vice-Chairman

Decision and Order

WHEREAS on 28 August 1992, J. S. Reason of Petro-Canada advised the Commission under Section 33.1 of the Petroleum Products Act that it would be reducing, due to market conditions, the prices of all products contained in its dealer and posted consumer tank truck schedules by 0.9 cent per litre, effective 12:01 a.m. on 1 September 1992;

AND WHEREAS representatives of the Company met with the Chairman of the Commission and the Director of the Petroleum Division on 2 October 1992 and explained that there had been a misunderstanding of the legislation governing price changes which resulted in the Company notifying the Commission of its wish to reduce both the dealer and posted consumer tank truck product prices at that time, and requested that the Commission give favourable consideration to approving a corresponding increase of 0.9 cent per litre in the posted consumer prices only;

AND WHEREAS these representatives were advised that it would be necessary for the Company to apply to the Commission for consideration of this matter;

AND WHEREAS Petro-Canada, by letter of 15 October 1992, confirmed the above misunderstanding in writing, and requested correction of the situation;

THE COMMISSION has reviewed the present posted consumer prices of Petro-Canada, and compared them with those of other wholesalers operating within this jurisdiction. The Commission notes that the present prices are not the lowest in the market, and that the reinstatement of the 0.9 cent per litre, while it will not result in its gasoline or diesel fuel prices being the highest in the market, will result in the Company's posted prices of stove oil and furnace oil being the highest in the Province at this time;

THE COMMISSION, however, accepts the explanation of the Company that there was a misunderstanding of the legislation at the time of the notification dated 28 August 1992, and will allow the requested upward adjustment in its posted consumer prices;

THE COMMISSION THEREFORE ORDERS that the posted consumer tank truck prices for Petro-Canada be increased by 0.9 cent per litre, effective 12:01 a.m. on 1 November 1992.

DATED at CHARLOTTETOWN this 27th day of OCTOBER, A.D., 1992.

BY THE COMMISSION:

Chairman

Vice-Chairman