PUB begins gradual increase to base price of gas with 2 cent increase across Newfoundland

Newfoundland and Labrador's Public Utilities Board increased the price of gas by nearly two cents per litre across the island portion of the province Thursday — part of the first in a series of increases to the base price of the fuel.

The adjustment follows a review of petroleum pricing in January, and changes to mark-ups and pricing zone differentials that are happening as a result.

The base price mark-up for gasoline, diesel and furnace oil will eventually increase by four cents per litre in most pricing zones, but that will be implemented in one cent per litre increments each week until Feb. 27, according to a news release.

This week, the price of gasoline increased by 1.9 cents per litre across Newfoundland thanks to the mark-up and market changes. Gas prices increased by 0.7 cents per litre in Labrador West and Churchill Falls, while other regions of Labrador are already under a price freeze on gas.

The change puts prices on the Avalon at a maximum price of $1.718 per litre, and prices range between $1.71 and $1.88 across the rest of Newfoundland and between $1.73 and $2.16 per litre in Labrador.

Diesel increased by 1.8 cents per litre across Newfoundland, and by 0.7 cents per litre in Labrador West and Churchill Falls. Prices now range between $1.98 and $2.09 per litre in Newfoundland and between $1.81 and $2.25 per litre in Labrador.

The price of furnace oil increased by over 1.5 cents per litre, meaning customers in Newfoundland will pay maximum prices between $1.30 and $1.48 per litre depending on their location.

Residents of Labrador West and Churchill Falls will see an increase in the price of stove oil of just over 0.6 cents per litre, putting prices between $1.20 and $1.69 per litre. The PUB traditionally also set maximum pricing benchmarks for stove oil in Newfoundland, but that was eliminated following the review.

The cost of propane is also going to fluctuate as a result of mark-up adjustments and zone differentials. On Thursday, the PUB said that propane price changes will vary between a 1.2 cent per litre decrease and a 3.3 cent per litre increase depending on location.

The change means maximum propane prices now range between $1.14 and $1.29 per litre in Newfoundland and between 97 cents and $1.41 per litre in Labrador.

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