Heating oil, diesel prices dive again

The price of heating oil and diesel dropped sharply on P.E.I. for the second time this week, but remain well above what they were on Oct. 1.

This was the regularly scheduled price review from the Island Regulatory and Appeals Commission.

The maximum price for heating oil fell 12.6 cents to $1.87. The minimum price at the pump for diesel dropped 12.7 cents to $2.43.

The price for gasoline was unchanged, and has not moved since Oct. 12, but heating oil and diesel have been on a wild ride for the last 16 days.

In an unscheduled change on Oct. 5, the price of diesel rose 5.8 cents to climb over $2 again, and heating oil was up 5.2 cents to $1.52.

But that was only the beginning of a sharp ascent. By mid-month diesel hit a record $2.63, a $0.69 increase in two weeks, and heating oil was up to $2.08, an increase of $0.61. Three days later the prices started falling.

There have been four unscheduled price reviews by IRAC this month, the most since March, when there were six following the invasion of Ukraine by Russia.

IRAC says it is normal for heating oil prices to go up with higher demand in the fall, and this year increased demand in Europe and reduced production by OPEC led to a sharper increase.

Heating oil and diesel prices went through a similar rise and fall in May, but the spike was not as sharp. The implications of high heating oil prices in the late spring were also not as serious as they are this fall, at the beginning of heating season.