Gas price slips as diesel and heating oil jump back up

Prices for diesel and heating oil were up on P.E.I. Friday morning, but drivers are seeing a little bit of relief at the gas pump.

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

The maximum price for heating oil rose 9.5 cents to $1.84. The minimum price at the pump for diesel was up 10.4 cents to $2.39.

Following two weeks of new record highs for gas prices, the minimum price at the pump for regular gasoline fell 2.3 cents to $2.16.

Prices for diesel and heating oil are well off record levels, which were set at the end of April. The price for diesel was $2.61 and heating oil was $2.14. Those prices fell through May as gas prices went up.

Petroleum product prices have been volatile since the Russian invasion of Ukraine at the end of February. World oil prices are up over concerns about disruptions of crude oil supplies from Russia.

But the pandemic has also played a major role. With demand low, production was cut sharply during the pandemic, but demand has risen faster than refiners have been able to keep up with. That has allowed those refiners that are operating to increase profit margins.

Volatility has eased somewhat. IRAC made six unscheduled price adjustments in March. There were three each in April and May, and only one so far in June.

While prices for gas, diesel and heating oil have risen significantly since the end of February, 35 to 40 per cent, propane prices are largely unchanged.

The average maximum price for bulk propane delivery is actually marginally lower since the end of February, down 3.1 cents to $1.00/litre.