HALIFAX, N.S. —
The Nova Scotia Utility and Review Board is increasing the wholesale margin price of gasoline and diesel due to COVID-19 concerns.
According to a URB news release, the wholesale price will increase by 2.5 cents to 9.15 cents a litre.
“Following a request from the Minister of Service Nova Scotia and Internal Services, the Board has reviewed information concerning the sufficiency of the current wholesale margin for gasoline and diesel and determined that, in order to guarantee security of supply in the current challenging COVID-19 global environment, an interim adjustment to the wholesale margin is necessary,” the release said.
This increase will be reflected in the normal setting of the price effective Friday, Jan. 8.
The wholesale margin is the difference between the benchmark price for a petroleum product and the price at which a wholesaler sells it to a retailer, excluding taxes, according to the province’s Petroleum Product Pricing Regulations in the Petroleum Products Pricing Act.
Under the regulations, the URB may “make an interim order to temporarily prescribe interim fixed wholesale prices in a situation that, in the Board’s opinion, threatens the security of the petroleum supply, including where there may be a shortage of supply of a petroleum product to wholesalers and wholesaler-retailers,” the news release said.
The URB is also starting an investigation of the wholesale margin under the regulations, engaging industry participants, it said.
“The benchmark price of gasoline and diesel oil is based on an average of the daily market price for
gasoline and diesel oil on the New York Mercantile Exchange (NYMEX) converted into Canadian dollars,” the release said.
The retail price paid at the pumps is the benchmark price plus the wholesale margin, retailer markup, transportation allowance, cost of carbon, and taxes added.
