P.E.I. gas, heating oil and diesel prices dive

The price of gas on P.E.I. is below $2 for the first time since mid-May; heating oil and diesel also took double digits drops.

This was an unscheduled change by the Island Regulatory and Appeals Commission.

The minimum price for a litre of gas fell 11.5 cents on Thursday to $1.992. The price has been on the way down since peaking at $2.187 on June 10, which was an all-time high, even with inflation factored in.

The minimum price for diesel was down 14.9 cents to $2.129. The maximum price for heating oil was down 13.7 cents to $1.62. Prices for heating oil and diesel peaked on June 17, also at record highs.

P.E.I. petroleum product prices

Prices for petroleum products on P.E.I., already at high levels,  spiked at the end of February when Russia invaded Ukraine. Russia is a major world supplier of oil, and market fears of supply disruptions drove up prices.

But the war has not been the only factor. A shortfall in refining capacity as the world economy emerged from pandemic restrictions has also been a contributing factor. Given the shortage of petroleum products, those refineries that are producing have been able to increase profit margins.

The price of propane, which has remained stable since the end of February, was unchanged.

The next scheduled review of petroleum product prices by IRAC is Friday.