Fuel prices spike across island after North Atlantic pleads for PUB increase

North Atlantic RefiningLtd. is getting what it asked for and fuel prices are on the rise in Newfoundland because of its request to the utility regulator. Labrador is not seeing anymarkups.

The owner of the idled Come ByChance refinery asked the Public Utilities Boardto "expeditiously" increase certain fuel prices.

In its weekly Thursday fuel price adjustments, the PUB said interim increases to wholesale markupshad been approved for Newfoundland.

Specifically, the PUB approved an increase of five cents a litre for gas, and four cents a litre for diesel, furnace oil and stove oil.

Because of shifts this week in commodities markets, however, the impact on consumers will be less.

A litre of self-serve unleaded gas is up 4.1 cents a litre, while diesel in the same area is up 3.3 cents a litre.Stove oil is up by 2.78 cents a litre, and propane increased by half a cent.

"These increases were approved to reflect the additional costs of importing these fuels to the island as a result of the transition of the North Atlantic Refinery at Come By Chance to standby mode," said the PUB.

Labrador will see decreases for everything except propane. Gas is dropping by 1.7 cents, while diesel is down 1.4 cents a litre, and stove oil and furnace oil are decreasing by a little over one penny a litre.

North Atlantic Refiningargued its costs to supply the market have spiked since the Placentia Bay facility stopped refining oil earlier this year, and fuels now have to be imported.

The most recent blow to the facility came earlier this month, when aproposed sale to Irving Oil fell apart at the last minute.The refinery was placed on standby mode in late March because of the global pandemic and resulting collapse in oil markets.

Company hadasked PUB to 'urgently' move

North Atlantic Refiningmade the formal request on Oct. 5. CBC News obtained a letter to the PUB, but the specific amount of the proposed markups had been redacted.

North Atlanticsaid it hadbeen importing refined fuels into the province from New York and Europe for the past six months and costs have increased due toshipping, inventory financing and hedging costs, and the use of a third-party fuels terminal.

CEO David Button said the board's current wholesale markups are based on having anoperating refinery in the market, and called on thePUB to "urgently" review fuel prices to reflect the fact that 100 per cent of refined fuels are now imported.

It is not immediately clear how long the markups will stay in effect.

PUB makes its own decisions: premier

Progressive ConservativeLeader Ches Crosbiesaid when it comes to higher fuel costs, the government has to find a solution to the root of the problem.

"Gas prices on the island are up as a direct result of the closure of the ComeBy Chance refinery, and the necessity to import gas into this province," he said Thursday during question period.

The government has no say in fuel prices, said Premier AndrewFurey.

"The PUB is an independentauthority with the expertise to review applications and make judgments accordingly," he said.

"We are working every day with the the current ownership of the Come By Chance refinery and potential buyers to try to facilitate the best option to recognize and realize the maximum value of this asset for the returns of Newfoundlanders and Labradorians."

North Atlantic hadasked the PUB to make these changes now, and saidfurther adjustments may be needed following a more comprehensive review "to reflect the costs of importing all fuels to the island."

The fate of the refinery, and the hundreds of employees, remains up in the air.

Origin International a private company in the United States thatspecializes in recycling used oil said in a statement earlier this monthit's interested in buying the Come By Chance refinery.

A third company came forward a week later, but itsidentity remains a mystery.

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