Home - Petroleum Products - Questions and Answers

Question: 14 
Why can't there be just one price for gasoline for the entire province?

When fuel-price regulation was first established in Newfoundland and Labrador the province was divided into different pricing zones to account for the costs of getting fuel products from the primary supply point to a particular region. These costs vary depending on how far the zone is from the primary supply and include factors such as delivery method (i.e. ferry delivery, marine tanker, drum delivery), storage, tractor trailer/tank wagon costs, and the volume of sales/product turnover. Generally, the further away a zone is from its primary supply the higher the cost of getting product to that zone.

Establishing maximum prices that reflect the costs to supply each zone helps to ensure that all areas of the province have continued access to fuel. A single maximum price for the entire province would tend to increase maximum prices in some zones and decrease maximum prices in other zones as the price would reflect the average cost of supply. As there is no requirement for fuel suppliers to sell or deliver product, a supplier may discontinue operations in an area if the cost of supply cannot be recovered.  As a result some areas of the province may be cut off from fuel deliveries.

 

Navigation Menu
Current Pricing
Historical Pricing
How Maximum Prices are Set
    Pricing Components
        Benchmark Prices
        Carbon Price Adjustment
        Total Allowed Mark-ups
        Zone Differentials
        Taxation
    Zones
    Timing of Adjustments
        Weekly Adjustments
        Extraordinary Adjustments
        Suspension of Adjustments
    History of Regulation
2022-2023 Review
Applications and Proceedings
Orders
Zone Map
Questions and Answers

 
     
 
 
About the Board
Commissioners
Legislation
Mandate and Lines of Business
Reporting Requirements
Disclaimer
Privacy Policy
Contact Us
  Public Utilities
Applications and Proceedings
Guidelines

Orders
Legislation
Compliance Filings and Reports
  Automobile Insurance
Applications and Proceedings
Guidelines

Orders
Legislation
Information Bulletins
Questions and Answers

  Petroleum Products
Current Pricing
Historical Pricing
How Prices Are Set
Applications and Proceedings
Orders
Legislation
Zone Map
Questions and Answers
 
 

Copyright © 2024 Board of Commissioners of Public Utilities. All Rights Reserved