Petroleum pricing in Nova Scotia
petroleum price regulations in Nova Scotia, Canada
Petroleum pricing in Nova Scotia is based on the Petroleum Products Pricing Act which governs the wholesale and minimum and maximum price of gasoline and diesel fuels that are authorized in Nova Scotia.
History
In the spring of 2004, some consumers and an association representing some retailers (the Retail Gasoline Dealers Association of Nova Scotia) complained about the rising price of gasoline and diesel fuel, and the closure of rural gas stations due to low volumes and low margins. After appearing before an all party committee on petroleum pricing, the Nova Scotia legislature passed Bill 79 The Nova Scotia Petroleum Products Pricing Act. After a year of not proclaiming it law, Rodney MacDonald, the Premier of Nova Scotia announced in May 2006 that petroleum prices will be regulated, beginning on 1 July 2006, two weeks following New Brunswick's announcement of doing the same.
Price Structure
The price of gasoline and diesel fuel are based on the price on the New York Mercantile Exchange as a benchmark in Canadian funds. This plus a 6 cent per litre wholesale margin, plus a transportation allowance of 0.5 to 2 cents per litre, and a retail margin of 4 to 5.5 cents per litre (or to a maximum of 7.5 cents per litre for full-serve gasoline).
Zones
The transportation of the product is calculated based on six zones in Nova Scotia:
Zone 1 - Halifax Regional Municipality, Hants County and southern Colchester County - 0.5 cents per litre
Zone 2 - Lunenburg, Kings and Eastern Annapolis counties, - 1 cent per litre.
Zone 3 - Western Annapolis, Digby, Yarmouth, Shelburne, and Queens counties - 1.4 cents per litre.
Zone 4 - Cumberland County - 1.5 cents per litre
Zone 5 - Northern Colchester, Pictou, Antigonish, and Guysborough counties, and the Port Hastings - Port Hawkesbury area of Inverness County - 1.5 cents per litre.
Zone 6 - the remainder of Inverness County, Richmond County, Victoria County, and Cape Breton Regional Municipality - 2 cents per litre.
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