Diesel jumps over 12 cents; Coady watching spikes in oil prices
The price of diesel increased by 12.2 cents per litre across much of Newfoundland and Labrador Thursday. (Ina Fassbender/AFP via Getty Images)
The price of diesel has seen a significant jump as part of the Public Utilities Board's latest price adjustment.
The PUB increased the price of diesel by 12.2 cents per litre across much of Newfoundland and Labrador, and by 8.5 cents per litre in Labrador West and Churchill Falls.
The change puts the price between $2.16 and $2.28 per litre in Newfoundland, and between $1.95 and $2.39 per litre in Labrador.
Furnace oil increased by over 5.4 cents per litre bringing prices between $1.37 and $1.55 per litre in Newfoundland, while stove oil increased by over 7.2 cents per litre across much of the province and over 7.4 cents per litre in Labrador West and Churchill Falls.
The change puts the price of stove oil between $1.47 and $1.65 per litre in Newfoundland and between $1.40 and $1.85 per litre in Labrador.
Gasoline was the lone fuel to decrease in price on Thursday, down 3.4 cents per litre. The change puts the price per litre at just under $1.68 on the Avalon Peninsula, between $1.68 and $1.84 across the rest of Newfoundland and between $1.69 and $2.08 per litre in Labrador.
Propane saw no change in price.
N.L. monitoring oil prices as Israel-Hamas conflict continues
Finance Minister Siobhan Coady said Wednesday the province is monitoring the price of oil — and how it could potentially impact the cost of living for residents — as prices increase due to the conflict between Israel and Hamas.
The price of Brent crude sat at $91.50 USD. on Wednesday. Oil prices have jumped in recent weeks, mostly due to concerns that the volatile situation could ensnare more countries in the region.
The provincial government projected oil to trade at $86 per barrel as part of the 2023 provincial budget, and Coady said they expect it to hover around that number.
"Right now, the price of fuel is quite high. And we don't expect it to come down too, too much if you look at what's happening worldwide. But we think this year it will be around what we thought it would be at budget," Coady told reporters at the House of Assembly on Wednesday.
Coady said she knows higher prices will make things more difficult for residents of the province, as higher oil prices tend to mean more expensive fuel and a rise in the cost of transporting goods.
With that in mind, Coady said the province is looking at options to help combat the rising cost of living.
"We'll continue to see if we have any extra dollars to be able to do anything to continue to help the people of the province," Coady said, adding government has spent $500 million on initiatives previously.
Newfoundland and Labrador Finance Minister Siobhan Coady says the province is monitoring the price of oil as the conflict between Israel and Hamas continues. (Ted Dillon/CBC)
Experts suggest the price of oil could increase further as the conflict between Israel and Hamas continues, even as high as $100-plus per barrel in some projections.
Even with an increase to the price of oil, Coady said it's tough to forecast a surplus for Newfoundland and Labrador at this time.
"I'm being quite frank, I'm not anticipating that we'll have a huge amount of extra revenue from our oil and gas industry this year. That's based on what I'm seeing right now in terms of the mid-year fiscal forecast," she said.
"Some are very bullish in saying that it could be up to $100, and some are saying, you know, it could be, you know, mid-80s. So we're monitoring it and seeing what we can do."
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