Stove and heating to take a beating…
Numbers show possible increase coming to heating and stove oils

Media release

Conception Bay South, NL, May 28, 2008- Consumers in Newfoundland and Labrador can expect to see a possible increase to heating and stove oils this Thursday as numbers seem to show that the Petroleum Pricing Office may have to use the interrupter formula.

“Six days of a possible seven days data shows a possible upwards movement of 4.4 cents a litre, just 4/10ths over the requirement for the use of the interrupter formula. I don’t believe that, in spite of the drop in oil yesterday, that distillate prices dropped enough to prevent the use of the formula so, it looks like consumers here may be hit,” said George Murphy, of the Consumer Group for Fair Gas Prices.

“Gasoline numbers are showing an added 3.5 cents a litre, not inclusive of taxes, so, according to the rules, that fuel is not susceptible to a price change tonite. However, I will be going to the pumps in case their numbers were a little more volatile than my own in this case. It’s only by a half cent and I really need that last days data to make the more accurate prediction. That day’s data won’t be available to me until after Thursday’s price move- IF it happens. I’d rather err on the side of caution personally. In the event there is no move in pricing on Thursday then consumers will most likely get tagged next Thursday at the regular price change time.

" What should sicken people is the simple fact that, if this price change holds true, it will be happening at a time when the trend traditionally shows downwards in the summer non-demand season for heating and stove oils. People should realy be worried over their heating expenses this coming winter if this keeps up. Heavy investment is beginning to lead to a collapse in the need for heating and stove oil product. Investment is actually going to kill the distillate market by making this product unaffordable to most consumers in North America. Are they pricing Canadian and US consumers out just to send the product overseas to the more lucritive European and Aian markets?

"Are we easterners going to be left freezing in the dark?

“Continued heavy demand by investors in commodities like gasoline and distillates again are playing heavy into the markets this past week and there was some added pressure on gasoline as well with the final run-up to the US Memorial Day holiday. What we keep hearing out there is the fact that all this high price jargon continues to make for an artificially-supported price and there is simply no justification in numbers that we see here that they should be this high. This is a bubble that is soon to break and bring investors to the short end of the stick. At least, here's hoping!”

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For more information, contact;

George Murphy
Group researcher/Member
Consumer Group for Fair Gas Prices My email: gasprices@hotmail.com