Fuel prices drop across N.L. but will rise Saturday with new carbon tax, says regulator

The prices of fuels are down across Newfoundland and Labrador on Thursdaybut willrise again with the implementation Saturday of a new federal carbon tax, according to the Public Utilities Board.

The maximum price of gas went down 4.2 cents per litre in the board's weekly price-setting Thursday, dropping the cost of a litre of unleaded fuel to $1.626 on the Avalon Peninsula, between $1.63 and $1.80 across the rest of Newfoundland and between $1.65 and $2.08 per litre across Labrador.

Diesel saw a decrease of 2.5 cents per litre across the province, putting prices between $1.62 and $1.74 in Newfoundland and between $1.69 and $2.36 in Labrador. Customers in Labrador West and Churchill Falls saw a slightly larger decrease,4.4 cents per litre.

The prices of furnace dropped by 2.14 cents per litre across the province, while stove oil dropped by 2.14 cents per litre in Newfoundland and most of Labrador, and just over 4.4 cents in Labrador West and Churchill Falls.

Propane saw the smallest decrease of the week, 0.3 cents per litre.

Gas, diesel will increase with new carbon tax Saturday, says PUB

The prices of gasoline, diesel and other fuels are expected to increase as a federal carbon tax comes into effect Saturday.

The provincial carbon tax of about 11 cents per litre is coming off gasoline and diesel but the federalcarbon tax will add14 cents per litre tothe fuels and isexpected to increase the price of home heating fuels by around 17 cents.

The prices of gas and diesel will increase Saturday in what it calls an extraordinary adjustment that is, outside its regular weekly price-setting, the PUB said. There won't be a change to the maximum prices of home heating fuels Saturday, said the PUB, because the maximum prices set by the board don't include applicable taxes, which are applied at the point of sale.The prices of home heating fuels will be adjusted at the next scheduled update, July 6.

The board says it expects to change the maximum price of motor fuels on July 6 as well because changes to provincial legislation last week require it to establish a carbon-price adjustment to mitigate new costs to wholesalers and retailers for complying with the federal Clean Fuel Regulations that take effect Saturday. Those regulations don't apply to heating fuels, said the board, and won't factor in next week's pricing adjustment.

Federal clean fuel regulations also come into effect Saturday, but the PUB says any adjustment to the price of carbon will come the following week.

Diesel, stove oil plummetin parts of Labrador

In some parts ofLabrador, the prices of diesel and stove oil are down dramatically Thursday morning, as the board ends its spring price freeze.

Earlier this month, much of Labrador had the seasonal price freeze lifted, with the exception of parts of the south coast, where fuel is supplied by tanker, and the north coast. With the annual spring resupply expected to clew up this week, the PUB said, prices are on the move in those regions.

The price of gasoline is now 10.9 cents per litre lower in those regions Thursday morning, dropping the cost to $1.924 per litre.

The largest decrease is in diesel, where prices decreased by 53.5 cents per litre. The change puts the price of the fuel at $2.146 per litre.

Stove oil also saw a decrease of 46.5 cents per litre, lowering the price per litre to just over $1.62.

Read more from CBC Newfoundland and Labrador