Order No. P.941108-1
IN THE MATTER of the Petroleum Products Act, R.S.P.E.I. 1988, Cap P-5.1
- and -
IN THE MATTER of adjustments indicated by crude oil costs to petroleum product prices charged its customers by ULTRAMAR CANADA INC.
Tuesday, the 8th day of November, 1994
BEFORE
Linda Webber, Chairman
John Blakney, Vice-Chairman
Decision and Order
Further to the Commission's Decision and Order No. P.940909-1, on 14 October 1994, an application was filed with the Commission by Shell Canada Products Limited, which application included requests for approval of crude oil cost related decreases.
This application was the only one received by the Commission for crude oil cost related decreases by the filing deadline of 15 October 1994. A press release dated 18 October 1994 invited public input by 31 October 1994 with respect to the application and the existing product prices of other wholesalers operating in the Prince Edward Island market, and none was received.
By individual letters dated 18 October 1994, the Commission requested comments of all other wholesalers by 31 October 1994 with respect to crude oil cost adjustments as a result of its monitoring of these costs, and indicated that it considered that a price adjustment might be in order.
The Commission received a letter from Doris Beaulieu, Director of Corporate Planning for Ultramar Canada Inc. on 28 October 1994 with attached application requesting approval to reduce all product prices in both its dealer and consumer pricing schedules by 0.4 cents per litre based on the August-September 1994 average cost of Brent crude oil.
The Commission's monitoring of Brent crude oil costs (Sullom Voe) indicated that it would be reasonable to reduce Ultramar's prices by 0.9 cent per litre since its last price adjustment based on the crude oil cost component of pricing, and in comparing the Commission's monitoring to the supporting documentation filed, it was noted by Commission staff that there was a $1.00 per barrel difference in the figure quoted by Ultramar as the September average cost of Brent crude oil from that being used by the Commission. This matter was referred back to Mr. Beaulieu for clarification on 2 November 1994.
On 3 November 1994, Mr. Beaulieu wrote to confirm that an error had been made in his earlier submission, and attached a revised application which requested that all product prices be decreased by 0.9 cent per litre.
Having considered the matter and the supplementary information available, the Commission finds that the evidence available supports decreases to Ultramar's dealer and posted consumer prices of 0.9 cents per litre based on the crude oil cost component of pricing as being just and reasonable. These requested decreases, effective 12:01 a.m. on Friday, 11 November 1994, are therefore authorized in the Commission's 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 Ultramar Canada Inc. effective 12:01 a.m. on 11 November 1994:
PRODUCT
CENTS PER LITRE (INCLUDING Federal Excise
and Provincial taxes)
Regular unleaded gasoline 47.9 Mid-Grade unleaded gasoline 49.8 Premium unleaded gasoline 51.7 Diesel 48.2 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 Ultramar Canada Inc., effective 12:01 a.m. on 11 November 1994:
PRODUCT
CENTS PER LITRE (INCLUDING Federal
Excise tax only)
Regular unleaded gasoline 43.7 Mid-Grade unleaded gasoline 44.4 Premium unleaded gasoline 45.1 Diesel Fuel 36.4 Stove Oil 35.0 Furnace Oil 33.4 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 8th day of NOVEMBER, A.D., 1994.
BY THE COMMISSION:
Chairman
Vice-Chairman