Jones pleased with lifting of petroleum pricing freeze in southern Labrador

Changes in the petroleum pricing mechanism in southern Labrador are a step in the right direction and something the communities have lobbied for over the past year, says Opposition Leader Yvonne Jones, MHA for Cartwright-L’Anse au Clair District.

Earlier today, the Public Utilities Board (PUB) announced that there will be no pricing freezes in Zones 11 and 11b in southern Labrador. Most communities will now have a fluctuating price as is the case in most areas across the province, something that was viewed as a more equitable system for consumers. The only community in the region to remain on the price freeze this winter is Black Tickle due to the geography and challenges of shipping fuel.

“Removing the pricing freeze in southern Labrador was something residents wanted after the significant price discrepancies experienced last winter,” said Ms. Jones. “While the rest of the province benefited from lower fuel prices, the people of southern Labrador were forced to pay prices that were locked in at a much higher rate. These fixed rates were being paid even though oil companies were shipping new supplies into the communities, fuel that was purchased at a much lower cost. As a result, consumers were paying significantly more for fuel, while the suppliers were reaping the extra profits simply because of the system that was in place.”

In her submission to the PUB, Jones highlighted that a survey of communities in the region showed that all communities except one lobbied to have the pricing freeze ended. Jones also presented the problems associated with transportation costs between zones that have added significant costs between pricing regions in southern Labrador. The PUB did not address this concern in today’s announcement to ensure a more equitable pricing system between zones.

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