Order No. P.940909-3
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 by IMPERIAL OIL LIMITED for adjustments indicated by crude oil costs to prices charged its customers.
Friday, the 9th day of September, 1994
BEFORE
Linda Webber, Chairman
John Blakney, Vice-Chairman
Decision and Order
Pursuant to the Commission's Order No. P-940705-3, Imperial Oil Limited filed with the Commission an application dated 9 August 1994 requesting approval of crude oil cost related increases amounting to 1.8 cents per litre based on average crude oil costs for June/July 1994.
This application was referred to in a press release dated 16 August 1994 inviting public input by 31 August 1994 with regard to this and other applications concerning refined product prices of wholesalers operating in the Prince Edward Island market. No such input was received.
The Commission gave consideration to the application of Imperial Oil Limited this date, which application was supported by Brent crude oil price data as reported by Platts rather than Natural Resources - Canada, as confirmed by letter dated 18 August 1994 from the Applicant. It should be noted that there are unexplained discrepancies between the figures quoted in this and the previous application and the supporting document filed by the Applicant in response to the Commission's request of 16 August 1994. Although these discrepancies are not particularly significant, particular attention should be paid to this in future. In any event, calculations attached indicated how the requested increase of 1.8 cents per litre was derived and following review, these calculations appear to support the current application.
The Commission's monitoring of Brent (Sullom Voe) crude oil prices based on the monthly average price reported by Natural Resources - Canada, and application of the formula used, indicates that a 1.4 cents per litre increase would be warranted since the Commission last approved price increases relating to crude cost adjustments. However, as Imperial requested and was granted only 1.9 cents per litre rather than the 2.2 cents per litre indicated by the Commission's similar monitoring in the previous instance, this application is deemed to be within reasonable limits. It was noted, however, in Appendix "A" to the application that the present approved base price of diesel fuel was quoted as being 30.38 rather than 30.3, and the Applicant should take particular note of this.
Following this consideration, the Commission approved the application and agreed that it would be just and reasonable to increase all refined product prices contained in Imperial's dealer and posted consumer pricing schedules by the requested 1.8 cents per litre effective 12:01 a.m., 13 September 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 Imperial Oil Limited, effective 12:01 a.m. on 13 September 1994:
PRODUCT |
CENTS PER LITRE (INCLUDING Federal Excise and Provincial taxes) |
| Regular unleaded gasoline | 48.7 |
| Mid-Grade unleaded gasoline | 50.7 |
| Premium unleaded gasoline | 52.6 |
| Diesel | 48.6 |
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 Imperial Oil Limited, effective 12:01 a.m. on 13 September 1994:
PRODUCT |
CENTS PER LITRE (INCLUDING Federal Excise tax only) |
| Regular unleaded gasoline | 43.5 |
| Mid-Grade unleaded gasoline | 43.9 |
| Premium unleaded gasoline | 44.4 |
| Diesel Fuel | 37.0 |
| Stove Oil | 36.3 |
| Furnace Oil | 34.0 |
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 9th day of SEPTEMBER, A.D., 1994.
BY THE COMMISSION:
Chairman
Vice-Chairman