Order No. P.980224-1

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

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IN THE MATTER of an application filed under Section 32 of the Petroleum Products Act, supra, by ULTRAMAR LTD. for decreases of 3.0 cents per litre in the prices of all products contained in its dealer and posted consumer tank truck pricing schedules based on decreased crude oil costs, and a decrease of 2.5 cents per litre in the price of low sulphur diesel contained in its dealer tank truck pricing schedule, due to market conditions.

Tuesday, the 24th day of February, A.D., 1998

BEFORE

Wayne D. Cheverie, Q.C., Chair
Ginger Breedon, Vice-Chair
Debbie MacLellan, Commissioner

Decision and Order

On 13 February 1998, an application dated 12 February 1998 was filed with the Commission by Tom Ptolemy, Co-ordinator Commercial Programs for Ultramar Ltd. ("Ultramar"). This application requested approval to decrease the prices of all products contained in Ultramar's dealer tank truck and posted consumer pricing schedules by 3.0 cents per litre, based on average crude oil costs for the two-month period of December’97/January’98, and an additional decrease of 2.5 cents per litre in the price of low sulphur diesel contained in its dealer tank truck pricing schedule, due to market conditions.

The Commission reviewed this application and others this date and gave consideration to the pricing adjustments requested by Ultramar based upon the supporting documentation filed and the Commission’s monitoring of the December’97/January’98 average cost of Brent marker crude, and the current dealer prices of low sulphur diesel in the marketplace.

Following this consideration, the Commission accepted the calculations supplied by the Applicant, and determined that it would be just and reasonable to decrease Ultramar’s dealer and posted consumer prices by 3.0 cents per litre (cpl) based on the crude oil cost component of pricing, and also approved the request to decrease the price of low sulphur diesel contained in Ultramar’s dealer tank truck pricing schedule by an additional 2.5 cents per litre, based on market conditions.

All prices authorized are to become effective 12:01 a.m. on 1 March 1998, and are as set out in 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 Ultramar Ltd., effective 12:01 a.m. on Sunday, 1 March 1998:

PRODUCT

 CENTS PER LITRE
(INCLUDING Federal Excise
and Provincial Taxes)
Regular Unleaded Gasoline

47.6
Mid-Grade Unleaded Gasoline 49.6
Premium Unleaded Gasoline 51.5
Low Sulphur Diesel 46.5

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 Ltd., effective 12:01 a.m. on Sunday, 1 March 1998:

PRODUCT

 CENTS PER LITRE
(INCLUDING Federal
Excise Tax)
Regular Unleaded Gasoline

45.8
Mid-Grade Unleaded Gasoline 46.5
Premium Unleaded Gasoline 47.2
Diesel 37.0
Low Sulphur Diesel 37.0
Stove Oil 34.6
Furnace Oil 31.9

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 24th day of FEBRUARY, A.D., 1998.

BY THE COMMISSION:

Chair

Vice-Chair

Commissioner