Irving Oil says the COVID pandemic is having a significant impact on the petroleum industry with a reduced demand for gas – jet fuel – and other refined products. And it says the entire supply chain is under pressure and at risk. So the company is asking the provincial Energy and Utilities Board for an immediate 3-cent increase in the wholesale price of motor fuels and furnace oil. The company is also asking the Board to approve a permanent increases from just under 7-cents to just under 10-cents per litre in motor fuels and from 5-cents a litre to 9-cents a litre on furnace oil.
Irving says the increase will help cover higher operating costs for things like transportation – terminal fees – and regulatory compliance. The company argues the wholesale margin hasn’t increased since March of 2013. The company laid off 250-employees last summer.
The Board is holding a pre-hearing conference on January 25th to finalize the review process it will use to consider the application. The “Notice of Application” can be found here.