N.L. fuel prices on the rise as PUB announces increases to carbon pricing
The price of gasoline is up two cents per litre across Newfoundland and Labrador Thursday. (Christopher Katsarov/The Canadian Press )
Newfoundland and Labrador's Public Utilities Board has updated its price adjustments on carbon as a result of further limit reductions from the federal government, leading to fuel price increases across the province.
Ottawa's federal clean fuel regulations came into effect on July 1, aimed at cutting the amount of pollution from cars and trucks and forcing companies to achieve carbon remission targets.
Provincial regulations in Newfoundland and Labrador were amended to require the PUB to include a carbon price adjustment to mitigate the added costs incurred by retailers and wholesalers who needed to comply, which was set at 3.74 cents per litre for gasoline and 4.17 cents per litre for diesel.
Further carbon-intensity limit reductions came into effect earlier this month, which the PUB says will result in higher costs for suppliers that will trickle down to consumers, according to a news release.
Effective Thursday, the carbon price adjustment for gasoline will increase from 3.74 cents to 5.4 cents per litre, while the price adjustment for diesel will increase from 4.17 cents to 6.02 cents per litre.
The adjustments don't apply to home heating fuel, or to the majority of Labrador as the region remains under a price freeze outside of Labrador West and Churchill Falls.
The price of gas increased by two cents per litre in Thursday's price adjustment, putting the price at $1.605 per litre on the Avalon Peninsula. Prices vary in other parts of the province, but range between $1.61 and $1.78 per litre in Newfoundland and between $1.67 and $2.12 per litre in Labrador.
Diesel increased by 5.9 cents per litre — and by 5.8 cents per litre in Labrador West and Churchill Falls — putting prices between $1.99 and $2.11 per litre in Newfoundland and between $2.01 and $2.55 per litre in Labrador.
The price of furnace oil is up by 4.3 cents per litre, meaning customers in Newfoundland will now pay between $1.19 and $1.37 per litre.
Stove oil increased by 2.49 cents per litre and by 3.43 cents in Labrador West and Churchill Falls. The adjustment means prices in Newfoundland range between $1.24 and $1.42 per litre, and prices in Labrador range between $1.41 and $1.95 per litre.
Propane increased by 0.9 cents per litre, putting prices between $0.98 and $1.11 per litre in Newfoundland and between $0.84 and $1.29 per litre in Labrador.
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