Petroleum pricing in Prince Edward Island is regulated by the
Island Regulatory and Appeals Commission

Island Regulatory and Appeals Commisssion

The Prince Edward Island Regulatory and Appeals Commission, informally shortened to the Island Regulatory and Appeals Commission or IRAC, is the independent tribunal and regulating arm of the Government of Prince Edward Island....

 of Prince Edward Island

Prince Edward Island

Prince Edward Island is a Canadian province consisting of an island of the same name, as well as other islands. The maritime province is the smallest in the nation in both land area and population...

.

Price Make up

Marketers buy on the basis of the "rack price" and the price set by refiners willing to supply Prince Edward Island retailers, mainly the Esso

Esso

Esso is an international trade name for ExxonMobil and its related companies. Pronounced , it is derived from the initials of the pre-1911 Standard Oil, and as such became the focus of much litigation and regulatory restriction in the United States. In 1972, it was largely replaced in the U.S. by...

 refinery in Dartmouth, Nova Scotia

Dartmouth, Nova Scotia

Dartmouth founded in 1750, is a community and planning area of the Halifax Regional Municipality, Nova Scotia. Located on the eastern shore of Halifax Harbour, Dartmouth has been nicknamed the City of Lakes after the large number of lakes located in the city.On April 1, 1996, the provincial...

 or Irving Oil

Irving Oil

Irving Oil is a gasoline, oil, and natural gas producing and exporting company. It is also one of the few energy companies in Canada to publicly support the Kyoto Accord. Irving Oil operates one large oil refinery...

 in Saint John, New Brunswick

Saint John, New Brunswick

City of Saint John , or commonly Saint John, is the largest city in the province of New Brunswick, and the first incorporated city in Canada. The city is situated along the north shore of the Bay of Fundy at the mouth of the Saint John River. In 2006 the city proper had a population of 74,043...

. The commission determines a "wholesale price" or "Approved Dealer Base Price" based on commodity prices from the NYEX

New York Mercantile Exchange

The New York Mercantile Exchange is the world's largest physical commodity futures exchange. It is located at One North End Avenue in the World Financial Center in the Battery Park City section of Manhattan, New York City...

. The commission then sets a "tank truck price" which includes Federal Excise Tax which is 10 cents per litre for Gasoline

Gasoline

Gasoline , or petrol , is a toxic, translucent, petroleum-derived liquid that is primarily used as a fuel in internal combustion engines. It consists mostly of organic compounds obtained by the fractional distillation of petroleum, enhanced with a variety of additives. Some gasolines also contain...

 and 6 cents per litre for Diesel as well as the provincial petroleum tax. The "retail price" is established at 5 to 7.5 cents per litre for full serve gasoline and 4 to 5.5 cents for self serve gasoline. All prices have an additional 5% goods and services tax

Goods and Services Tax

A goods and services tax or value added tax is a tax on exchanges.By country:*Goods and Services Tax *Goods and Services Tax *Goods and Services Tax *Goods and Services Tax...

added.

Prices are reviewed every 15 days or whenever the price raises or falls on the market sufficiently to interrupt the cycle by triggering an interrupting formula.

Notice

The people in Prince Edward Island are notified of any changes in the price via the Island Regulatory and Appeals Commission website or through the media. Price changes are usually closely guarded to prevent runs on supply at local service stations.

External links

• http://www.irac.pe.ca/petrol/ Island Regulatory and Appeals Commission]