PPPC MEDIA RELEASE

Supply concerns lead to removal of price freeze for Zone 10a

Effective 12:01 a.m. Friday, May, 28, the Petroleum Products Pricing Commission (PPPC) has decided to lift the price freeze for Zone 10a (Mary’s Harbour to Cartwright).

The policy to freeze prices for the area was put in place by the PPPC based on consultation with stakeholders and the fact that new fuel stocks could not be supplied to the area over the winter months. The price freeze has been in effect since Nov. 15, 2003, and affects Zones 10a, 11 (Coastal Labrador South) and 14 (Coastal Labrador North).

Although prices have not changed since Nov. 15, the opening of Route 510 between Mary’s Harbour and Cartwright and favourable ice conditions allow inventories to be replenished for communities in Zone 10a.

The PPPC has been reviewing the existing policy, and is aware of concerns regarding a secure supply of fuel for this region. To act on these concerns, after extensive consultation with various stakeholders, it has been decided to release the freeze on prices for Zone 10a before the scheduled date of June 15, 2004.

Consequently, this means the price for all types of gasoline in this zone will increase by 20.1 cents per litre (cpl), diesel by 7.9 cpl, and home heating fuel by 6.05 cpl.

Media contact: Michelle Hicks, Communications. Tel: 1-866-489-8800 or (709) 489-8837.