Order No. P.940705-4

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

- and -

IN THE MATTER of applications by IRVING OIL LIMITED for adjustments indicated by crude oil costs to prices charged its customers.

Tuesday, the 5th day of July, 1994

BEFORE

Linda Webber, Chairman
John Blakney, Vice-Chairman

Decision and Order

Pursuant to the Commission's Order No. P-940307-4, Irving Oil Limited filed with the Commission two separate applications requesting approval of crude oil cost related increases amounting to 2.4 cents per litre based on average crude oil costs for April/May 1994. The application relating to posted consumer prices was dated 10 June 1994 and the application relating to dealer prices was dated 13 June 1994. Also filed by the Company was a separate application requesting increases in its posted consumer prices of mid-grade and premium gasolines by amounts additional to any crude cost-related increases, thus widening the differentials between the grades of gasoline sold under the posted consumer schedule. This application is dealt with in the Commission's Decision and Order No. P.940705-4A.

These applications, together with several applications filed by other wholesalers, were referred to in press releases dated 17 and 24 June 1994. Public input with regard to any or all of them was invited by 30 June 1994. No such input was received.

The Commission gave consideration to the above-noted crude oil cost-related applications of Irving Oil Limited this date. It was noted that these applications quoted Brent crude oil prices as reported by Platts, even though the last application made by Irving was based on Brent (Sullom Voe) crude oil prices similar to those reported by Natural Resources - Canada (formerly EMR). The reductions to prices ordered by the Commission on two occasions earlier this year were also based on Natural Resources pricing information. The Company was asked to comment on this, but as of 30 June 1994, no written response was received. The Commission's monitoring of Brent (Sullom Voe) crude oil prices provided by Natural Resources - Canada and application of the formula used, indicates that a 2.2 cents per litre increase would be warranted since the Commission last ordered price decreases relating to crude cost adjustments.

Following this consideration, the Commission agreed that it would be just and reasonable to increase all refined product prices contained in Irving's dealer and posted consumer pricing schedules by 2.2 cents per litre rather than the 2.4 cents per litre requested, effective 12:01 a.m., 11 July 1994, and approved these increases based on the crude oil cost component of pricing, in accordance with the attached Order.

THE COMMISSION HEREBY ORDERS AS FOLLOWS:

1. THAT the following wholesale tank truck prices are to be charged dealers in Prince Edward Island supplied by Irving Oil Limited, effective 12:01 a.m. on 11 July 1994:

PRODUCT

 CENTS PER LITRE

(INCLUDING Federal Excise

and Provincial taxes)
Regular unleaded gasoline 47.4
Mid-Grade unleaded gasoline 49.4
Premium unleaded gasoline 51.3
Diesel 47.1

2. THAT the following wholesale posted consumer tank truck prices (which prices do not include Provincial tax or seven per cent G.S.T.) shall be in effect in the Province of Prince Edward Island for the wholesaler Irving Oil Limited, effective 12:01 a.m. on 11 July 1994:

PRODUCT

 CENTS PER LITRE

(INCLUDING Federal

Excise tax only)
Regular unleaded gasoline 42.1
Mid-Grade unleaded gasoline 42.6
Premium unleaded gasoline 43.2
Diesel Fuel 35.6
Stove Oil 33.7
Furnace Oil 32.5

3. THAT the above dealer prices, with seven per cent G.S.T. added, and the above posted consumer prices, with Provincial Tax (where applicable) and seven per cent G.S.T. added, shall be indicated on all documents accompanying deliveries of these products.

4. THAT the prices quoted in this Order, with adjustments resulting from tax changes only, shall remain in effect until otherwise ordered by the Commission.

DATED at CHARLOTTETOWN this 5th day of JULY, A.D., 1994.

BY THE COMMISSION:

Chairman

Vice-Chairman