Changes to the Petroleum Products Act brought forward in the House of Assembly on May 14, 2022, to improve transparency within the fuel pricing process regulated by the Public Utilities Board (PUB) have received Royal Assent. The Act can be found on the House of Assembly website.
The Regulations have been published in the Newfoundland and Labrador Gazette and are effective immediately.
Pricing is heavily influenced by global events. The process to determine fuel prices in Newfoundland and Labrador takes into consideration many factors, such as geographic location, transportation, delivery and storage costs.
The amendments require the PUB to make available to the public:
- The maximum wholesale and retail prices;
- The minimum and maximum mark-up between the wholesale price and retail price (the total allowed markup); and
- The procedure for determining adjustments to the petroleum base wholesale and retail price.
The amendments also expand the authority of the Minister of Digital Government and Service NL, and allows the minister to direct the PUB to review all fuel-pricing components, providing government with increased opportunities to ensure appropriate pricing.
In addition, there are now increased opportunities for Newfoundlanders and Labradorians to express opinions directly to the PUB on the fuel pricing process, through public hearings directed by the minister.
The minister has written the PUB requesting a review of the suitability of the pricing mechanism for benchmark prices, as well as the maximum mark-up between the wholesale price to the retailer, and the retail price to the consumer for all regulated fuels. The minister has also directed the PUB to hold a public hearing to inform this review.
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“Amendments to the Petroleum Products Act and Regulations not only improve transparency, but also help increase public awareness and contribute to better understanding of the fuel pricing process. By making this information available, people in the province will be able to clearly see what is making up the fuel prices being paid at the pumps. I encourage residents to become involved in the review by the PUB, and I look forward to the recommendations.”
Honourable Sarah Stoodley
Minister of Digital Government and Service NL
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News Release: Government Introduces Additional Measures to Help Residents with the Cost of Living –
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Media contact
Krista Dalton
Digital Government and Service NL
729-4748, 685-6492
kristadalton@gov.nl.ca