Gas prices drop 5 cents per litre on P.E.I.

Island motorists got a break at the pumps on Saturday.

The price of gas dropped by five cents per litre, and diesel went down by 2.2 cpl.

Including adjustments for taxes, pump prices for gasoline at self-serve pumps now range from 120.9 to 122 cpl. Diesel pump prices at self-serve outlets range from 143.4 to 144.6 cpl.

Furnace oil and stove oil prices dropped by one cent per litre. This comes after four straight increases in heating oil since Sept. 15 that raised the price by a total of 10.3 cpl.

The maximum price for furnace oil will now be 103.6 cpl, plus tax.

There was no change in the price of propane.

'Abundant supply of gasoline'

The Island Regulatory and Appeals Commission approved the unscheduled price adjustment. The commission said wholesale gasoline prices have dropped dramatically over the past few days.

"The U.S. report on gasoline inventories shows that there has been a large buildup in available gasoline inventory. This combined with the seasonal slowdown in demand for gasoline and the fact that gasoline refinery maintenance activities are winding up points to an abundant supply of available gasoline. This has caused speculators to sell off gasoline future holdings. The result has been a substantial drop in the commodity price of gasoline on the commodities exchange," IRAC said in a news release.

The commission's next scheduled price adjustment will be on Nov. 1.

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