Gas price up, but P.E.I. avoids big jump
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The price of gas rose overnight on P.E.I., but Islanders have so far not seen a big spike in prices like the one that people in Ontario saw this week.
It was the regular weekly price review from the Island Regulatory and Appeals Commission.
The minimum price at the pump for regular gas was up 4.6 cents per litre to $1.77.
Diesel and heating oil prices fell, with the minimum price at the pump for diesel down 4.7 cents to $1.86 per litre and heating oil down 3.2 cents to $1.34 per litre.
Dan McTeague, president of Canadians for Affordable Energy, said the gas price is up due to a changeover to how it is formulated in the summer. Winter blends mix more butane, a more volatile substance, into the octane.
"Winter, traditionally colder weather, you want to make sure the vehicle ignites quickly, so refiners mix in a lot of butane," said McTeague.
With warmer weather refiners aim for a less volatile mix, but instead mix in alkylates. These help the gas burn more cleanly, but are expensive.
Middle East tensions
The price of gas in Ontario rose as much as 17 cents overnight this week, to about $1.79 per litre.
MacTeague said the market is reacting to increasing tensions between Israel and Iran, and the possibility of an expanded conflict there.
The base price in Ontario comes from a rate set in for fuel exported out of New York Harbour.
On P.E.I., because all of the province's fuel comes out of the Irving refinery in Saint John, the base price is set entirely differently, coming from a rate set by Irving and posted on racks at the oil tanks in Charlottetown harbour.
