Stable prices show N.L. gas regulation works: advocate

A St. John's gas-pricing watchdog says the recent stability in prices in the Newfoundland and Labrador marketplace show the province's regulatory system is working.

Gas prices shot up in most jurisdictions in Canada last week, although the Petroleum Pricing Office which pegs gas prices in Newfoundland and Labrador did not make any changes.

George Murphy, researcher for the Consumer Group for Fair Gas Prices, said regulation seems to have prevented the sharp jumps seen in other provinces.

In Vancouver, for instance, consumers were paying as much as $1.28 per litre last week.

"When I see the movement in prices [elsewhere], and I know the price that the consumer here is being charged I know that the consumer here is being well-served," Murphy told CBC News.

A litre of unleaded gas in the St. John's area cannot legally be sold for more than $1.167 per litre. Prices vary around the province, to account for transportation costs.

The PPO will make its next scheduled price setting on Thursday. Murphy expects a hike of about three cents or less per litre.

However, Murphy said he expects gas prices to increase substantially during the summer, possibly hitting $1.30 per litre by July.

Newfoundland and Labrador introduced a regulatory fuel pricing system in 2001.