Calgary, 11 July 2023
The Canadian province of Nova Scotia has switched its fuel regulation pricing basis to benchmark pricing data provided by global energy and commodity price reporting agency Argus. Nova Scotia publishes minimum and maximum prices for diesel and gasoline that retailers can charge the public. These prices are set at a differential to Argus assessments.
Argus’ fuel price assessments are used around the world in physical and derivatives contracts, including across the US and Canada. Refiners, wholesalers, retailers and traders have chosen to rely on Argus’ price assessments as the basis for external fuel contracts and internal accountancy work. Argus assessments also act as settlement prices for futures trading on leading exchanges CME and ICE.
“We are pleased that the government of Nova Scotia has decided to move to Argus as their basis for fuel price regulation,” Argus Media chairman and chief executive Adrian Binks said. “Argus fuel prices have been adopted by market participants across North America and underpin key futures and swaps markets.”
Pernille Jakobsen Esaiw, Director of Legislation and Policy, Business and Consumer Services at Service Nova Scotia said: “Industry has told us that Argus is the accepted benchmark for gasoline and diesel prices in Canada and the US and has confidence that its prices are accurate and reflect market dynamics. For these reasons it makes sense for Nova Scotia to base our price thresholds on these independent and trusted benchmarks.”