Second

Session, 46th General Assembly

Elizabeth II, 2009

BILL 50

AN ACT TO AMEND THE

PETROLEUM PRODUCTS ACT

Received and Read the First Time ...................................................................................................

Second Reading .................................................................................................................................

Committee ............................................................................................................................................

Third Reading .....................................................................................................................................

Royal Assent ......................................................................................................................................

HONOURABLE

KEVIN O'BRIEN

Minister

of Government Services

Ordered

to be printed by the Honourable House of Assembly

EXPLANATORY NOTES

This Bill would amend the

definitions

of "heating fuel" and "motor fuel" in the Petroleum Products Act to include petroleum-based

components and blends.

The Bill would enable the Public

Utilities Board to recover costs of an application made by a wholesaler or

retailer who requests a change in the price of a petroleum product.

It would further enable the board to

conduct a review of the price of a petroleum product.

A BILL

AN ACT TO AMEND THE PETROLEUM PRODUCTS ACT

Analysis

S.2 Amdt.

Interpretation

S.4 Amdt.

Maximum prices

S.8 Amdt.

Application for change in price

S.8.1 Added

Review by board

S.23 Amdt.

Regulations

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

SNL2001 cP-10.1

as amended

1. (1) Paragraph 2(1)(

c) of the Petroleum Products Act is repealed and

the following substituted:

(c) "heating fuel" means furnace oil,

stove oil or propane of a type used primarily for generating heat and includes a

liquid product distilled from petroleum used as a component

of it;

(2) Paragraph 2(1)(

e) of the Act is repealed and

the following substituted:

(e) "motor fuel" means gasoline, diesel

fuel or propane of a type used primarily in internal combustion engines and

includes a liquid product distilled from petroleum used as a component of it;

(3) Section 2 is amended by adding immediately

after subsection (2) the following:

(3) The following petroleum products are exempt

from the provisions of this Act:

(

a) motor fuel used for aviation purposes; and

(

b) motor fuel used for marine purposes except

where the motor fuel is purchased from a retailer who sells that type of motor

fuel for other purposes.

2. Paragraph 4(1)(

a) of the Act is repealed and

the following substituted:

(

a) to set, and shall set the maximum wholesale

and retail prices that a wholesaler and a retailer may charge for heating fuel

and motor fuel including different grades, derivatives or components of them;

and

Section 8 of the Act is amended by adding

immediately after subsection (5) the following:

(6) The board may order that an applicant pay the

costs in relation to an application, and those costs shall be paid within 30

days of the order of the board.

4. The Act is amended by adding immediately after

section 8 the following:

Review by board

8.1

(1) The

board may, on its own motion, conduct a review of the maximum mark up between

the wholesale price to the retailer and the retail price to the consumer or

allowed service costs to ensure they are justified, and may order adjustments

to the mark up or the allowed service costs after the review is completed.

(2) The board may, on the request of a wholesaler

or retailer or on its own motion, review the suitability of the pricing

mechanism for benchmark prices, and may provide the minister with its recommendation

on the matter.

(3) The board shall, on the request of the minister,

review the suitability of the pricing mechanism for benchmark prices and shall

provide the minister with its recommendation on the matter.

Section 23 of the Act is amended by deleting

the word "and" at the end of paragraph (

f) and by adding immediately

after that paragraph the following:

(f.1) defining a word or expression used but not

defined in this Act; and

Earl G. Tucker, Queen's Printer