UARB using interrupter clause to raise gas prices
Nova Scotia gasoline were set to go up again Friday at midnight, just 24 hours after the weekly gas price was established by the provincial regulator.
The retail price for regular selfservice gasoline increased 7.4 cents a litre at midnight Thursday, due to rising prices on North American energy markets caused by supply shortages brought about by refinery shutdowns in Texas.
Texas and other U.S. states along the Gulf of Mexico were adversely affected by heavy rains and severe flooding brought by hurricane Harvey.
The use of the interrupter clause Friday at midnight was necessary due to significant shifts in the market price of gasoline, the Utility and Review Board stated in a news release.
The price for diesel oil is not affected by the interrupter at this time.
The Nova Scotia URB has been given the authority by the provincial government to monitor the market prices for diesel oil and gasoline daily and, if conditions warrant, may set a new price at any time.
According to the price setting regulations, if the price fluctuates between six cents and eight cents a litre, the URB may use the interrupter to set the price ahead of the normal weekly price setting time of midnight Thursday.
Nova Scotia’s benchmark price of gasoline is based on an average of the daily market price for refined gasoline on the New York Mercantile Exchange, converted into Canadian dollars. Retail price paid at the pumps is the benchmark price with wholesale margin, retailer markup, transportation allowance and taxes added.
Changing the price early, according to the URB, aims to provide fair prices for consumers while maintaining security of supply for the province.