IRAC should adjust petroleum prices weekly, says committee

P.E.I. should move to a system where fuel prices will be set every week, a legislative committee is recommending.

The standing committee on energy and infrastructure delivered its report to the legislature Tuesday. It says the current system used by the Island Regulatory and Appeals Commission, a twice-monthly review, can lead to dramatic price adjustments.

"Wholesale prices of petroleum products have become more volatile in recent years," the report says.

"In the span of the two-week price period, wholesale prices may fluctuate up and down by a wide margin."

IRAC already monitoring daily

The report says a weekly price adjustment would stabilize the market for both consumers and fuel retailers.

It goes on the say IRAC already monitors wholesale prices daily and has the information it needs to make decisions every week.

Both New Brunswick and Nova Scotia currently have weekly pricing adjustments.

P.E.I. moved from to a twice-monthly adjustment from monthly in 2005.

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