Acts and Regulations

2006-41 - General

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NEW BRUNSWICK
REGULATION 2006-41
under the
Petroleum Products Pricing Act
(O.C. 2006-240)
Filed June 27, 2006
Under section 33 of the Petroleum Products Pricing Act, the Lieutenant-Governor in Council makes the following Regulation:
Citation
1This Regulation may be cited as the General Regulation - Petroleum Products Pricing Act.
Definitions
2The following definitions apply in this Regulation.
“Act” means the Petroleum Products Pricing Act. (Loi)
“base product” means with respect to a type of heating fuel or motor fuel, the corresponding product classification utilized by Platts under the heading “Product Price Assessments, New York Cargo”, and by Bloombergs in the case of propane, and as set out in Schedule A. (produit de base)
“Bloombergs” means Bloombergs Oil Buyers Guide. (Bloombergs)
“Platts” means Platts Oilgram Price Report. (Platts)
Periodic setting of maximum prices
3(1)Except where otherwise provided, the Board shall set maximum wholesale and retail prices for petroleum products to take effect every Thursday.
3(2)Subject to section 6, where Wednesday is a statutory holiday, the Board shall set the maximum wholesale and retail prices to take effect the following Friday.
2007-27
Benchmark price - periodic determination
4(1)Subject to section 6, the benchmark price for each type of heating fuel and motor fuel shall be determined as follows:
(a) for regular unleaded gasoline - the average of the daily high price and daily low price for the corresponding base product set out in Schedule A, averaged over the 7 day period immediately preceding each Wednesday;
(b) for mid-grade unleaded gasoline - the benchmark price for regular unleaded gasoline plus 3 cents per litre;
(c) for premium unleaded gasoline - the benchmark price for regular unleaded gasoline plus 6 cents per litre;
(d) for ultra-low sulphur diesel fuel - the sum of the average of the daily high and low product prices for each corresponding base product set out in Schedule A.1 times the percentage of each base product as set out in Schedule A.1, averaged over the 7 day period immediately preceding each Wednesday;
(e) for furnace oil - the sum of the average of the daily high and low product prices for each corresponding base product set out in Schedule A.1 times the percentage of each base product as set out in Schedule A.1, averaged over the 7 day period immediately preceding each Wednesday;
(f) for propane - the average of the daily high price and daily low price for the corresponding base product set out in Schedule A, averaged over the 7 day period immediately preceding each Wednesday.
4(2)For the purposes of calculating the benchmark price for a type of heating fuel or motor fuel over a 7 day period, the daily high and low prices attributed to a base product for any Saturday, Sunday or day that is a statutory holiday in the State of New York or, in the case of propane, in the Province of Ontario, shall be deemed to be the prices in effect for that base product on the last business day immediately preceding the Saturday, Sunday or statutory holiday, as the case may be.
4(3)The daily noon exchange rates published by the Bank of Canada shall be used for the purpose of converting United States currency to Canadian currency.
4(4)The benchmark price shall be expressed in Canadian cents per litre or other unit of measurement appropriate to the petroleum product.
2007-27
Interruption of periodic adjustment of benchmark price
5Repealed: 2007-27
2007-27
Interruption of periodic adjustment of benchmark price
6(1)The Board shall adjust the benchmark price for a type of petroleum product in the following circumstances:
(a) the average of the daily high and daily low product prices on any day for the base product set out in Schedule A that corresponds to the petroleum product increases or decreases from the previous day’s average of the daily high and daily low product prices for that base product by an amount that is equal to or more than the amount prescribed in Schedule C;
(b) the average of the daily high and daily low product prices on any day for the combination of base products as set out in Schedule A.1 that corresponds to the petroleum product increases or decreases from the previous day’s average of the daily high and daily low product prices for that combination of base products as set out in Schedule A.1 by an amount that is equal to or more than the amount prescribed in Schedule C.
6(2)An adjustment to the benchmark price for regular unleaded gasoline shall be applied at the same time to the benchmark price for mid-grade unleaded gasoline and premium unleaded gasoline.
6(3)The benchmark price shall be adjusted by increasing or decreasing the previously determined benchmark price by the actual amount of the increase or decrease that causes the adjustment under paragraph (1)(a) or (b), as the case may be.
6(4)The Board shall notify wholesalers the day after the increase or decrease under subsection (1) occurred, and shall set the maximum wholesale and retail prices to take effect as of 12:01 a.m. of the day following notification.
6(5)After making an adjustment under this section, the Board shall calculate the benchmark price in accordance with section 4 on the day it would normally have been calculated, but
(a) shall not use any deemed prices for Saturday, Sunday or a statutory holiday as provided for under subsection 4(2),
(b) shall exclude the price data in effect for the corresponding base product or combination of base products on the day the circumstances in subsection (1) occurred, and
(c) shall calculate the benchmark price averaged over the number of days remaining after applying paragraphs (a) and (b).
6(6)Notwithstanding subsection (5), where the circumstances referred to in subsection (1) occur on a Tuesday, the Board shall discard all unused data for the prices of petroleum products affected that have been accumulated before that date.
2007-27
Initial setting of the total allowed margin
7(1)For the purpose of setting the total allowed margin for each type of heating fuel and motor fuel, the Minister shall consider
(a) the historical margin between prices for the base product and the prices that have been charged to consumers within the province for the type of heating fuel or motor fuel, excluding applicable taxation and estimated delivery costs, for the period of time that the Minister considers appropriate;
(b) whether the historical margins identified as a result of paragraph (a) are reasonable, taking into account
(i) the costs of transporting heating fuel or motor fuel from New York Harbour or, in the case of propane, from Sarnia to the province,
(ii) volume of sales,
(iii) storage costs, and
(iv) inventory turnover rates;
(c) that the maximum retail price only sets a maximum price for the sale of heating fuel and motor fuel by retailers to consumers and should, to the extent possible, allow competition between retailers; and
(d) the other considerations that the Minister considers relevant.
7(2)The total allowed margin shall be expressed in Canadian cents per litre or other unit of measurement appropriate to the petroleum product.
Initial setting of the maximum wholesale margin
8(1)After the total allowed margin for a type of heating fuel or motor fuel has been established, the Minister shall set the maximum wholesale margin for that type of heating fuel or motor fuel by taking into consideration
(a) the historical margin between the prices for the base product and the prices that have been charged to retailers within the province of the type of heating fuel or motor fuel, excluding applicable taxes and estimated delivery costs, for the period the Minister considers appropriate;
(b) whether the historical margins identified as a result of paragraph (a) are reasonable, taking into account
(i) the costs of transporting heating fuel or motor fuel from New York Harbour or, in the case of propane, from Sarnia to the province,
(ii) volume of sales,
(iii) storage costs, and
(iv) inventory turnover rates,
(c) that the maximum wholesale price only sets a maximum price for the sale of heating fuel and motor fuel by wholesalers to retailers and should, to the extent possible, allow competition between wholesalers; and
(d) the other considerations that the Minister considers relevant.
8(2)The allowed wholesale margin shall be expressed in Canadian cents per litre or other unit of measurement appropriate to the petroleum product.
Application for adjustment of maximum margins
9(1)Where an application has been made to the Board under section 12 of the Act for a change in the maximum margin that may be charged by a wholesaler or retailer, the Board shall consider the following:
(a) whether, since the maximum margin was last set, an adjustment would be justified as a result of a change to
(i) the costs of transporting heating fuel or motor fuel from New York Harbor or, in the case of propane, from Sarnia to the province,
(ii) volume of sales,
(iii) storage costs,
(iv) inventory turnover rates, and
(v) applicable levies and insurance costs; and
(b) any other factors that the Board considers relevant.
9(2)Where the Board adjusts a maximum margin, it shall inform wholesalers and retailers of the adjustment.
9(3)The new maximum margin shall come into effect on a Thursday on which the maximum wholesale and retail prices would normally come into effect under section 3.
Initial setting of maximum delivery costs
10(1)When setting the initial maximum delivery costs allowed in respect of the delivery of heating fuel or motor fuel, the Minister shall take into consideration
(a) the delivery costs incurred by retailers for the delivery of heating fuel for the period of time the Minister considers relevant, and
(b) the delivery costs incurred by wholesalers and charged to retailers in the case of motor fuel for the period of time the Minister considers relevant.
10(2)The maximum delivery costs shall be expressed in Canadian cents per litre or other unit of measurement appropriate to the petroleum product.
Adjustment of maximum delivery costs
11Where an application has been made to the Board to adjust the maximum delivery costs that may be charged by a wholesaler or retailer under section 13 of the Act, the Board shall consider
(a) fuel costs,
(b) insurance costs,
(c) capital costs,
(d) volume of sales,
(e) in the case of an application for delivery costs that are particular to the applicant, the cost effectiveness of the applicant’s operation, and
(f) any other factors that the Board considers relevant.
Review by Board
12Where the Board conducts a review under section 14 of the Act, the Board shall consider the same factors that apply under section 9, in the case of a review of maximum margins, and under section 11, in the case of a review of maximum delivery costs.
Applicable taxation
13The applicable taxation shall be the amount of taxation payable by a wholesaler or retailer in respect of a type of heating fuel or motor fuel and shall be expressed in Canadian cents per litre or other unit of measurement appropriate to the petroleum product.
Levies
14(1)For the purposes of section 26 of the Act, a wholesaler shall pay to the Board a levy of 0.025 cent per litre of gasoline and motive fuel sold by the wholesaler in the 12 month period ending on the thirty-first day of October preceding the calendar year for which the licence to the wholesaler under the Gasoline and Motive Fuel Tax Act is issued.
14(2)The levy shall be paid at the same time that the wholesaler is required to pay the fee for a wholesaler’s licence under the Gasoline and Motive Fuel Tax Act.
Display of prices
15(1)A retailer shall display the prices for types of motor fuel sold or offered for sale by the retailer on one or more legible signs that are placed in a conspicuous location at or near the entrance to the premises and that are clearly visible to consumers.
15(2)Numbers on signs required under subsection (1) shall not be less than twenty centimetres in height and shall contrast in colour with and be clearly visible against the background.
15(3)This section does not apply to a co-operative association incorporated under the Co-operative Associations Act or to which that Act applies which has by properly enacted by-law restricted the sale of motor fuel at its retail outlet to members of the co-operative association.
Posting of prices by Board
16The Board shall ensure that the maximum retail and wholesale prices and the maximum delivery costs that are applicable with respect to any period are posted on its Website or are otherwise made readily available to consumers no later than 9:00 a.m. on the day that those prices or delivery costs take effect.
Information from wholesalers and retailers
17(1)Every wholesaler and retailer shall provide the Board, in writing, with
(a) the name of an individual and his or her position title, designated by the wholesaler or retailer, to receive all notices, decisions, requests, correspondence and other communications from the Board on behalf of that wholesaler or retailer,
(a.1) a statement as to whether or not, in the case of a retailer, the retailer contracts with a third party to deliver motor fuel from a wholesaler to the retailer or picks up the motor fuel itself from a wholesaler, and
(b) contact information for the wholesaler or retailer, including where possible
(i) a mailing address,
(ii) a telephone number,
(iii) a facsimile number, and
(iv) an electronic mail address.
17(1.1)A retailer shall provide the information under paragraph (1)(a.1) to the Board within 30 days after the commencement of this subsection.
17(2)A person who becomes a wholesaler or retailer after these regulations come into force shall provide the Board with the information set out in subsection (1) within 30 days after becoming a wholesaler or retailer.
17(3)A wholesaler or retailer shall inform the Board of any changes to the contact information submitted under subsection (1) or (2) without delay.
2007-48
Notification of retailers by Board
2007-48
17.1Retailers who provide information to the Board under paragraph 17(1)(a.1) shall be notified by the Board under subsections 3(3) and 5(3) of the Act.
2007-48
Reports by wholesaler
2007-27
18(1)A wholesaler shall submit written reports to the Board on a form provided by the Board containing the following information:
(a) the names of each retailer, the location of each outlet of the retailer and the type of retailer to whom motor fuels or heating fuels are sold or held for reselling to consumers;
(b) the volumes of each product sold to each retailer by outlet totaled in litres on a monthly basis;
(c) the delivery costs charged to each retailer referred to in paragraph (a);
(d) such other information the Board may require with respect to the sale of petroleum products.
18(2)The reports shall be submitted
(a) for each calendar year and not later than the thirtieth day of January of the following year, and
(b) upon request of the Board for such period of time and within the period of time specified by the Board.
2007-27
Reports by retailer - motor fuel
2007-27
19(1)A retailer shall submit written reports for retail motor fuel outlets to the Board on a form provided by the Board containing the following:
(a) the name of the retailer and the location and type of each retail outlet at which motor fuels are sold to consumers;
(b) the type and capacity in litres of each storage tank at each outlet by type and grade of product;
(c) the volumes of each type or grade of fuel sold totaled in litres on a monthly basis;
(d) the volume of each product sold through self-serve pumps and through full service pumps totaled in litres on a monthly basis;
(e) the delivery costs paid by the retailer to the wholesaler.
19(2)The reports shall be submitted
(a) for each calendar year and not later than the thirtieth day of January of the following year, and
(b) upon request of the Board for such period of time and within the period of time specified by the Board.
2007-27
Reports by retailer - heating fuel
2007-27
20(1)A retailer who sells heating fuel shall submit written reports to the Board on a form provided by the Board containing the following information:
(a) the name of the retailer and the retailer’s location;
(b) a description of the method by which the retailer acquired heating fuel from a wholesaler;
(c) the name of each wholesaler and volumes purchased from each by product type and volume in litres on a monthly basis;
(d) the volumes of each type or grade of fuel sold totaled in litres on a monthly basis.
20(2)The reports shall be submitted
(a) for each calendar year and not later than the thirtieth day of January of the following year, and
(b) upon request of the Board for such period of time and within the period of time specified by the Board.
2007-27
Exemption
2007-48
20.1A retailer who sells motor fuel at any of the following outlets is exempt from the Act but only with respect to motor fuel sold at the outlet:
(a) an outlet located at a marina;
(b) an outlet located at a hunting or fishing lodge;
(c) an outlet operated by a motorized snow vehicle club for the purpose of fuelling motorized snow vehicles during the winter season.
2007-48
Commencement
21This Regulation comes into force on July 1, 2006.
SCHEDULE A
Motor fuel/
Heating fuel
Base product
Regular unleaded
gasoline
Platts New York Cargo
Unl 87
Propane
Bloombergs Sarnia
Propane
2006-82; 2007-27
SCHEDULE A.1
Month
Motor fuel
Ultra-low
sulphur diesel
 
 Heating fuel
Furnace oil
Base
product
% Platts New York Cargo
ULSKero
Base
product
% Platts New York ULSDF
Base
product
% Platts New York Cargo Jet
Base
product
% Platts New York Cargo #2
January
85
15
77
23
February
82
18
75
25
March
65
35
54
46
April
0
100
0
100
May
0
100
0
100
June
0
100
0
100
July
0
100
0
100
August
0
100
0
100
September
23
77
23
77
October
60
40
62
38
November
80
20
76
24
December
85
15
77
23
2007-27
SCHEDULE B
Repealed: 2007-27
2006-82; 2007-27
SCHEDULE C
Motor fuel/
Heating fuel
Cents per litre
Regular unleaded gasoline
8
Ultra-low sulphur diesel
 
8
Furnace oil
5
Propane
6
2006-82; 2007-27
N.B. This Regulation is consolidated to August 28, 2007.