Go light on the golden stuff
Gasoline to drop this coming Thursday if the numbers hold today
News release
Paradise, NL, June 12, 2007- Unless there is a drastic increase in the price of gasoline in the markets today, it is likely that consumers will catch another break at the pumps as the Petroleum Pricing Office will have to use their interrupter formula, that’s according to George Murphy of the Consumer Group for Fair Gas Prices.
“Good builds in gasoline inventories over the past three weeks have taken some of the early worries on high summer pricing out of the markets, at least for this week and that is going to translate into a five cent drop at the pumps this coming Thursday morning if the numbers hold so, word here is ‘go light on the gold stuff’,” Murphy said.
“This interruption will bring our spot pricing average down towards the 60 cent a litre basic cost price for gasoline. Gasoline pricing in the markets will have to trade at 65 cents a litre today for any decrease not to happen. This decrease is representative of what Big Oil has seen in the markets; consumers hitting that brick wall on pricing. Demand didn’t show any strong increase to match what was being added to inventories. Demand numbers showed a 1.5 per cent increase against last years’ numbers, a number that showed some weakening against the inventory build.
“While we have already hit a new all-time record on pricing, it doesn’t mean that we’ll see continued drops in pricing. We could see a reversal of this downwards trend as people start their summer vacations. We’re not ready to ease back on warnings of record pricing this summer quite yet although any continued build in inventories would be of benefit to the consumer. If prices drop this week, it would bring pricing down to levels last seen a year ago. That still is reflective of the predicted pricing range that we’ve hit once already.”
-30-
For more information, contact;
George Murphy
Group researcher/Member
Consumer Group for Fair Gas Prices
(709)782-8053
(709)685-6186 cellular
Gasoline to drop this coming Thursday if the numbers hold today
News release
Paradise, NL, June 12, 2007- Unless there is a drastic increase in the price of gasoline in the markets today, it is likely that consumers will catch another break at the pumps as the Petroleum Pricing Office will have to use their interrupter formula, that’s according to George Murphy of the Consumer Group for Fair Gas Prices.
“Good builds in gasoline inventories over the past three weeks have taken some of the early worries on high summer pricing out of the markets, at least for this week and that is going to translate into a five cent drop at the pumps this coming Thursday morning if the numbers hold so, word here is ‘go light on the gold stuff’,” Murphy said.
“This interruption will bring our spot pricing average down towards the 60 cent a litre basic cost price for gasoline. Gasoline pricing in the markets will have to trade at 65 cents a litre today for any decrease not to happen. This decrease is representative of what Big Oil has seen in the markets; consumers hitting that brick wall on pricing. Demand didn’t show any strong increase to match what was being added to inventories. Demand numbers showed a 1.5 per cent increase against last years’ numbers, a number that showed some weakening against the inventory build.
“While we have already hit a new all-time record on pricing, it doesn’t mean that we’ll see continued drops in pricing. We could see a reversal of this downwards trend as people start their summer vacations. We’re not ready to ease back on warnings of record pricing this summer quite yet although any continued build in inventories would be of benefit to the consumer. If prices drop this week, it would bring pricing down to levels last seen a year ago. That still is reflective of the predicted pricing range that we’ve hit once already.”
-30-
For more information, contact;
George Murphy
Group researcher/Member
Consumer Group for Fair Gas Prices
(709)782-8053
(709)685-6186 cellular
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