IRAC allows slightly higher profit margin for furnace oil on P.E.I.
CBC
The Island Regulatory and Appeals Commission will allow companies distributing furnace oil on P.E.I. to make a little more money per litre starting Jan. 5, 2024.
In a ruling released Friday, IRAC said it will allow the combined margin for furnace oil to increase by 1.6 cents per litre to a maximum of 23.1 cents per litre.
That's less than what suppliers wanted. They had asked for a five-cent increase per litre, arguing that operating costs went up 23 per cent between 2017 and 2022.
Companies that sell commercial diesel also wanted to see an increase, and got one. Profit margins will increase for commercial diesel, going up 5.3 cents per litre to a maximum of 23.1 cents per litre, falling in line with the profit margin for furnace oil.
IRAC held the line on retail gasoline and diesel for the most part. The margin for gas and diesel will stay at a minimum of seven cents per litre and a maximum of eight cents per litre.
There will be a change as to how mid-grade and premium gas prices will be calculated, however.
Right now, IRAC adds 3.5 cents and 6.9 cents per litre on top of the base price to set maximum prices that can be charged for the two higher grades of gasoline.
In January, IRAC will use a formula that takes half of the regular rack price and half of the premium rack price to determine those prices.
The watchdog said the change is due to the higher cost of production of these fuels and the fact that the supply isn't keeping up with demand.
IRAC also decided to continue using the Charlottetown Rack price as the benchmark in its pricing formula, calling it "competitively determined, relevant, timely and transparent."
That benchmark equates to the cost of refining oil and its transportation to Charlottetown. There had been calls to change to the New York Harbour benchmark.
The decision was in part because wholesalers say using Charlottetown Rack simplified their own pricing and accounting.
IRAC staff were not available for an interview on Friday, but the commission is considering doing reviews like this every two years going forward.
As their role in health care continues to grow, nurse practitioners across Canada are looking to Alberta, where nurse practitioners recently formed their own union — but on P.E.I., the nurses' union that represents them says it's doing its job.
As the fallout over fallen buildings in Gore Park continues, Hamilton officials will be turning their attention to other properties.
Fire crews responded to a transport truck fire on the Ambassador Bridge connecting Windsor and Detroit.
When the government touts that its auto insurance reforms might curb premiums by $400 come 2027, the ministers and premier don't readily mention what's to come in the three years leading up to that.
Who poses the greater threat to the free speech of Conservative MPs — the Speaker of the House of Commons or the leader of the Conservative Party?
As city council prepares to vote on a temporary shelter village for people experiencing homelessness in Thunder Bay, Ont., opposition is growing among the area's business community.
A Toronto centre for Black art is hosting an exhibition this weekend that exclusively features work by artists from across the African diaspora.
Click on the video player above on Saturday beginning at 1 p.m. ET to watch the 2024 Vanier Cup.
This story is part of CBC Health's Second Opinion, a weekly analysis of health and medical science news emailed to subscribers on Saturday mornings. If you haven't subscribed yet, you can do that by clicking here.
Some Canadian seniors say they're feeling abandoned by the Liberal government's latest inflation relief measure after learning they don't qualify for it.
WARNING: This article may affect those who have experienced sexual violence or know someone affected by it.