Sorry I haven't been posting lately but things have been really busy on my end. I'll try and keep up again though, I dunno. Here's my latest release warning of an imminent price increase coming to Newfoundland and Labrador consumers of heating and stove oil product.

Some warnings to governments provincially and federally here. They might want to dive in and heed the warnings. Troble here is that, wherever you might be,if you use heating oils, you might also be affected.

If you have any questions on the release, drop me a line.



Early Interruption-Heating Oil

Numbers show an unprecedented summer increase in heating oil pricing

News Release

Paradise, NL, August 05/06 – According to numbers that the Consumer Group for Fair Gas Prices are tracking on a daily basis, consumers of heating and stove oils could be facing an increase to consumer pricing as early as Tuesday, August 08/06. Numbers are showing that the Interrupter formula criteria have been met and that means an early adjustment in pricing, in this case, upwards by 2.23 cents per litre.

“What makes this increase almost unprecedented is the fact that we are still in a “non-demand” season for heating and stove oil product and this pricing has been heading in the opposite direction,” according to George Murphy the group’s researcher. “Numbers for heating and stove oils are showing a disturbing trend this year with very little or no decrease in pricing ahead of the winter demand season. Because the numbers for heating and stove oils are still up, we could be facing one of the most contentious heating seasons this coming winter,” added Murphy.

To complicate matters, Newfoundland and Labrador Hydro recently applied to the Public Utilities Board for rate increases that could come to the consumer in early January 2007 one of the reasons for the coming increase being higher crude oil acquisition costs. “This is a double whammy for any consumer looking to heat their home this winter.

While consumers could be looking at the adjustment in pricing, they could also be looking at another increase when the regular adjustment period coming on August 15th. Numbers need to drop back over the next five business days considerably before we see no upwards adjustment again by that time,” according to Murphy.

“This is a warning sign to both the federal and provincial governments that consumers in this province and this country face a very hard winter as regards to keeping warm if the present trends in world energy pricing and usage continues. We are now some 6 cents a litre higher than the same time period for last year and that should be saying something. The federal government needs to re-instate home retrofit programming in this country to help out those in need and both governments need to return some of their royalty monies back to the people who own the resources that profits are taken from,” Murphy said. “There are options but neither government has been producing any to the public over the past couple of weeks and we need to hear something sooner rather than later.”

-30-

For more information, contact

George Murphy
Group researcher/Member
Consumer Group for Fair Gas Prices
gasprices@hotmail.com
709.782.8053
709.685.6186 cellular




Methodology

Here’s what I have over the past while since the last adjustment in pricing. Keep an eye out on the gasoline numbers as well as they are also pointing up for the end of the regulation period.

Heating/Stove oil = 56.02/Litre Gasoline = 64.48/Litre

DATE Crude Oil Heating Gasoline Canadian vs US $
$ US Cents/Lt Cents/Lt
July 12/06 74.95 57.90 66.06 $1.1335 = $1 US
July 13/06 76.70 59.73 66.94 $1.1319
July 14/06 77.03 59.38 67.65 $1.1274
July 17/06 75.31 57.71 67.16 $1.1322
July 18/06 73.55 56.67 66.62 $1.1336
July 19/06 72.67 56.75 65.98 $1.1353
July 20/06 73.09 56.07 66.71 $1.1341
July 21/06 73.94 56.96 68.18 $1.1374
July 24/06 74.71 57.30 69.04 $1.1416
July 25/06 73.41 56.58 68.07 $1.1414
July 26/06 73.95 56.88 68.24 $1.1378
July 27/06 74.55 58.58 69.08 $1.1345
Interruption-Gasoline. New Fix = 67.47/Litre
July 28/06 73.25 57.49 67.95 $1.1298
July 31/06 74.41 58.34 69.59 $1.1309
August 01/06 74.92 59.82 71.49 $1.1305
August 02/06 75.82 61.15 72.43 $1.1259
August 03/06 75.47 61.00 71.66 $1.1263
August 04/06 74.77 60.21 67.89 $1.1270
Total spot =1048.52
Divide by: 18 days = 58.25
Allowable Increase= +2.23/Litre

Interruption occurs when the last five days spot pricing averages 3.5 cents a litre over or below the previous fix in pricing. In this case, numbers averaged greater than 3.5 cents a litre from the previous fix of 56.02 from the last adjustment time.