UARB rejects automatic interrupter clause
Posted Oct 4, 2011 03:33:18 PM.
This article is more than 5 years old.
The Utility and Review Board has issued a decision that says the province will not adopt a mandatory interrupter clause to adjust gas prices during major market swings.
The board cited it would cause “significant problems” if it was made mandatory. But some standards have been recommended.
The board recommends a trigger of six cents per litre, and that the trigger should be sustained for two days to consider interruption, but they will continue to apply the interrupter on a discretionary basis.
Executive Director of the Retail Gasoline Dealers Association Graham Conrad explains what some of those “problems” would be.
“If a retailer buys his product and pays a certain price for it on the anticipation of selling it at a certain price and the retail price fluctuates, especially going down, retailers stand to lose and awful lot of money.” he says.
He adds the standards seem to be fair because there needs to be a cutoff somewhere.
“Six cents a litre is a pretty large gap, certainly more than the entire retail margin that’s out there,” says Conrad. “Anything less than that you could end up with constant fluctuations in prices which is very, very difficult on retailers and oil companies and it’s very frustrating to the motoring public”.
Vice President of Wilson’s Fuels Dave Collins tells News 95.7 the decision maintains the status quo, and just formalizes what the UARB already does.
“What’s the amount of change that needs to happen for how long? Those two things have been more or less articulated which makes it a little more clear, which make it’s a little better if you’re in business trying to deal with it.” says Collins.
Gas prices will continue to be set at 12:01am Friday morning.
