Newfoundland and Labrador drivers woke up to another hit at the pumps this week, as gas prices crept upward once again — despite a recent dip in global oil prices and a welcome decline following the removal of the carbon tax.
According to the Public Utilities Board, the cost of regular self-serve gasoline rose this week across the province. In St. John’s, prices are hovering around $1.517 per litre, with some areas across the province being even higher.
This week’s increase comes on the heels of a surprising development in the global energy market: the price of a barrel of crude oil (BRENT) dropped to $65.35 USD, down over 5% in the past 7 days. The decline is being attributed to a mix of growing inventories, sluggish demand projections, and ongoing economic uncertainty in key markets like China and Europe.
So, why are prices rising here at home?
That’s the question many residents are asking — and not for the first time. The price-setting mechanism in Newfoundland and Labrador considers more than just crude oil prices. Refined fuel costs, transportation, exchange rates, and seasonal demand shifts all factor into the final pump price. Still, the disconnect between a falling barrel and rising pump price continues to raise eyebrows.
While the price adjustment mechanism may eventually reflect this week’s oil drop, it’s unclear when or if that will happen. In the meantime, NL drivers are left footing the bill — and questioning the logic.