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Tuesday, January 20, 2009

Update #2

Commodities prices spike
Expect interruption to pricing Thursday night

Media release

Conception Bay South, NL, January 20, 2009- Oil prices may have lost some of its steam but the price of it’s related, refined commodities like gasoline continues to climb. Again this Thursday, the Petroleum Pricing Office may very well be forced to use the interrupter formula to adjust prices upwards as a result.

“According to our numbers, prices may rise by as much as 6.1 cents a litre in spite of the recent drop in oil prices. Traders are continuing to bet that demand for refined products will pick up and that’s helping to keep the spot price of gasoline elevated,” said George Murphy, group researcher with the Consumer Group for Fair Gas Prices. “Six days out of seven days data needed, are showing a marked increase in spot prices against the backdrop of oil over the last week.”

“Other markets have seen a steady increase in gasoline pricing as well, some areas by as much as what we’re expecting for Thursday morning. We don’t expect immediate movement on heating, stove oils or diesels but those numbers will probably have increases to retail pricing when prices are adjusted again next week. Right now, they don’t meet the criteria for interruption as gasoline.

“If there is any glaring evidence that traders and investors are responsible, then this is it. In the face of ugly economic news and falling demand, the trader and investor continues to help support refined product prices and that is only helping to thwart any possibility of economic recovery. Until the numbers accent the reality of the world economy, consumers will always feel that they are being taken for a ride as they have been from the last couple of weeks energy trading markets.”

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For more information, contact;

George Murphy
Group researcher/Member
Consumer Group for Fair Gas Prices

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