Gas prices leap by 4.2 cents a litre

The PUB allows a substantial increase in gas prices, with a 4.2-cent lift across almost all of Newfoundland and Labrador.
Gas prices across most of Newfoundland and Labrador rose Thursday. (CBC)

The Public Utilities Board allowed a substantial increase in the cost of gas on Thursday, with a 4.2-cent lift on the maximum price of fuel across almost all of Newfoundland and Labrador.

It's the second increase of that magnitude in as many weeks.

Thursday's setting means that retailers on the Avalon Peninsula — where gas prices are cheapest — can now charge as much as $1.384 for a litre of self-serve unleaded gas. Some retailers, though, charge less in order to attract customers.

Prices vary widely across the province to account for such factors as shipping and storage. For instance, many customers in the Corner Brook and Stephenville areas are facing a top price of $1.391 for self-serve unleaded gas, while the price on Change Islands has now reached $1.492.

While prices have climbed strongly in the last two weeks, levels amount to only about four cents above the cost of gas a year ago.

In its weekly setting, the PUB also increased the ceiling on the cost of diesel by as much as 2.7 cents per litre.

For home-heating fuel, the cost of furnace oil increased by 0.39 cents per litre, while stove oil was up 1.79 cents.

The PUB increased the cost of propane by 0.3 cents per litre.

The chart below shows how average gas prices in Newfoundland and Labrador have changed over the last 12 months, compared to both changes in the national average for gas prices and the global price of oil.