Fuel prices drop on P.E.I., while earning margins for retailers bumped up

·1 min read
The price of self-serve unleaded gasoline on P.E.I. is currently 165.3 cents a litre. (Mitch Cormier/CBC - image credit)
The price of self-serve unleaded gasoline on P.E.I. is currently 165.3 cents a litre. (Mitch Cormier/CBC - image credit)

The price of gas, diesel and heating oil dropped on P.E.I. Friday morning.

Gas is down by 6.9 cents a litre, diesel by 7.9 cents and furnace oil by 7.1 cents after taxes.

The adjustments were approved by the Island Regulatory Appeals Commission.

The decreases were actually larger, but IRAC also approved temporary increases in earnings margins for retailers — one cent gas and diesel, and a half-a-cent increase in the margin for furnace oil — that brought the price back up slightly.

Retailers had asked for a three cent increase, and a consultant hired by IRAC suggested about a two cent increase.

IRAC said these new margins are temporary while more investigation and analysis is done, including any changes to wholesale margins, which remain unchanged.

The minimum price at the pump for gasoline on P.E.I. is currently $1.653 a litre, while diesel sits at $2.111. The maximum price for furnace oil is $1.589.