Price of heating oil, diesel skyrocket overnight

After a month of calm from mid-March to mid-April, volatility has returned to petroleum product prices on P.E.I.

The Island Regulatory and Appeals Commission put prices up overnight in an unscheduled review.

The maximum price for heating oil rose 15.7 cents a litre to $1.87Thursday morning. The minimum price at the pump for diesel was up 17.2 cents a litreto $2.31.

The price of gas also increased, with the minimum price at the pump up 4.6 cents to $1.79.

The heating oil increase is particularly significant for Islanders. Heating oil is one of the key drivers pushing inflation on P.E.I. above the national average. The consumer price index for fuel oil on P.E.I. was up 83 per cent from March 2021 to March 2022.

Prices rose dramatically following Russia's invasion of Ukraine in late February, setting new records even with inflation factored in.

The new price sets a record for furnace oil, even taking into account inflation.

On July 15, 2008, the price rose to $1.339, which in 2022 dollars would be $1.771.

Record prices for diesel are also being set. On that same date in 2008 the price was $1.554, or $2.055 in 2022 dollars.

After sharp rises early in March, prices fell back in the middle of the month and stayed steady for some weeks. Last week they began to rise again, and diesel and heating oil prices were already above the March highs before the increase Thursday morning.

Gas prices are still about seven cents lower than their March peak.