Prince Edward Island’s regulatory commission has conditionally approved a new 24-hour fuel outlet in Borden-Carleton, finding that benefits for motorists outweighed objections from existing retailers concerned about increased competition.
The Island Regulatory and Appeals Commission’s Jan. 14, 2026 order permits D.P. Murphy Inc. to establish an Irving-branded outlet at the Trans-Canada Highway and Dickie Road. The approval requires round-the-clock operation, at least 121 parking spaces and at least 15 designated tractor-trailer spaces.
The decision is under challenge. The P.E.I. Court of Appeal’s schedule, checked Oct. 30, lists Ceretti’s Grocery & Hardware Ltd.’s appeal for Jan. 27, 2027. The court cautions that hearing dates may change; the listing does not resolve the appeal.
Motorists’ interests govern the licensing test
D.P. Murphy proposed a roughly six-acre development with fuel pumps, a Tim Hortons restaurant, a convenience store, electric-vehicle charging and facilities for larger vehicles. Three fuel retailers already served Borden-Carleton when it applied.
Two existing operators, Howatt’s Tourist Mart and Ceretti’s, opposed the application. Ceretti’s said a material loss of fuel sales would threaten its broader operation, which also offered groceries, hardware and a butcher shop. The commission received approximately 400 public comments, many opposing the proposal or supporting existing businesses.
The panel applied the Petroleum Products Act’s public-interest, convenience and necessity test from the perspective of the motoring public. It said the legislation encourages competition and does not give an existing licensee an exclusive right to the market.
Competitive harm was relevant, but the commission said refusing an application on that basis required clear evidence that a new outlet would close an existing one and that the closure would reduce service to motorists generally. It found that evidence lacking here.
Approval did not mean accepting every forecast
The commission did not accept that local or provincial population figures supported the application. Borden-Carleton’s population was small and relatively static, and the applicant had not shown how broader Island population growth would materially increase fuel demand in the community.
It also identified weaknesses in the applicant’s consultant’s forecasts. Actual fuel sales were below projected levels, and the consultant had not explained why projected provincial growth substantially exceeded the historical rate. The panel nevertheless found continuing demand after examining the local sales evidence as a whole.
Traffic and tourism evidence weighed in favour of approval. The commission accepted that Borden-Carleton’s position beside the Confederation Bridge made increasing bridge traffic and visitor numbers relevant to demand at the proposed site.
The proposed facilities would also give commercial drivers a place to park and access services when the bridge is closed to high-sided vehicles. The panel found that the outlet would offer enhanced services and greater choice, including the return of the Irving brand to the community.
Ceretti’s relied on an accounting report forecasting serious losses and likely closure. The commission questioned assumptions that the new outlet would reduce sales across its whole business, including products D.P. Murphy did not intend to sell. It also considered the existing retailer’s established customer base and the support expressed by local residents.
The panel acknowledged that the new outlet could hurt Ceretti’s and possibly other nearby operators competitively. Its finding was narrower than a guarantee of their survival: the evidence did not clearly establish that approval would cause an existing outlet to close.
Further conditions remain part of the order
Beyond its operating and parking requirements, the order required D.P. Murphy to provide a licensing fee, municipal development approval and any development agreement, approval for petroleum storage facilities, a fuel-supply agreement and proof of land ownership within 12 months of the decision.
A company unable to meet those conditions must give reasonable notice before the deadline and make submissions seeking an extension, which remains at the commission’s discretion. The order provides for rescission and a fresh application if the conditions are not met within the prescribed period and no extension is granted.
The decision approved a petroleum retail licence subject to conditions; it did not establish that construction had been completed or that the outlet was operating. Nor does the appeal listing establish whether the conditions have been satisfied or whether a stay has been sought or granted.
The three-member panel consisted of vice-chair Kerri Carpenter and commissioners Gordon MacFarlane and Terry McKenna. Its decision is Order PC26-001, docket PD527.
