Order No. P.940909-4
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.
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-940705-4, Irving Oil Limited filed with the Commission an application dated 8 August 1994 requesting approval of crude oil cost related increases amounting to 1.7 cents per litre based on average crude oil costs for June/July 1994.
These applications, together with several applications filed by other wholesalers, were referred to in a press release dated 16 August 1994. Public input with regard to any or all of them was invited by 31 August 1994. No such input was received.
The Commission gave consideration to the above-noted crude oil cost-related application of Irving Oil Limited this date. It was noted that this application quoted Brent crude oil prices as reported by Platts, as did the previous application for crude oil cost adjustments. The Applicant has specifically requested that although previous applications were based on Natural Resources pricing information, it be permitted to change its base price formula and use the Platts rather than the Natural Resource publication in this and future applications. Irving had requested a 2.4 cents per litre increase in its previous application, but was granted a 2.2 cents per litre increase by the Commission's Order No. P.940705-4 based on Natural Resources - Canada data due to the fact that the earlier decreases ordered by the Commission had been based on Natural Resources data.
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 1.4 cents per litre increase would be warranted since the Commission last approved price increases relating to crude cost adjustments. However, as Irving wishes to change to the Platts data as the basis for this and future applications, it is felt that its current application of 1.7 cents per litre increase is within reasonable limits.
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 1.7 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 Irving Oil Limited, effective 12:01 a.m. on 13 September 1994:
PRODUCT |
CENTS PER LITRE (INCLUDING Federal Excise and Provincial taxes) |
| Regular unleaded gasoline | 49.1 |
| Mid-Grade unleaded gasoline | 51.1 |
| Premium unleaded gasoline | 53.0 |
| Diesel | 48.8 |
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 13 September 1994:
PRODUCT |
CENTS PER LITRE (INCLUDING Federal Excise tax only) |
| Regular unleaded gasoline | 43.8 |
| Mid-Grade unleaded gasoline | 44.4 |
| Premium unleaded gasoline | 44.9 |
| Diesel Fuel | 37.3 |
| Stove Oil | 35.4 |
| Furnace Oil | 34.2 |
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