P.E.I. diesel and heating oil prices soar overnight

Petroleum product prices took a big leap upward overnight Tuesday on P.E.I.

This was an unscheduled price review by the Island Regulatory and Appeals Commission. The regular weekly review is on Fridays.

The price of heating oil rose the most. The maximum price was up an even 21 cents per litre to $1.87. The price of diesel was not far behind, with the minimum price at the pump up 20.7 cents to $2.37.

Gas was also up, but not nearly as much. The minimum pump price rose 3.4 cents to $1.79.

This is the second unscheduled increase from IRAC this month, and prices appear to be returning to some of the volatility seen in the spring after settling down in the summer months. 

Prices for diesel are up 42.8 cents this month, and heating oil is up 40.8 cents.

This is still far from the record prices seen in May, when diesel hit $2.61 and heating oil $2.14.

Price based on several factors

Jaclynne Hamel, a policy analyst and communications adviser at IRAC, said the price of petroleum products is based on several factors, including time of year, supply and demand, natural disasters, extreme weather and disruption in supply due to civil unrest and war.

"Normally around this time of year we see the price of furnace oil increase over the fall and winter months as a result of increased demand with colder weather."

She said the volatility in global markets can warrant an unscheduled price adjustment.

"The commission is really tasked with making sure prices are fair for Islanders but also that wholesale and retailers are able to make a reasonable rate of return."