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Wednesday, August 26, 2009

Numbers are up but only slight increases expected

Media release


Conception Bay South, NL, August 25, 2009- Last week’s surprise draw on inventory will translate into some minor increases in fuel prices when the Public Utilities Board moves to adjust prices this coming Thursday, that’s according to George Murphy, group researcher for the Consumer Group for Fair Gas Prices.

“The numbers are not too bad in the wake of market activity over the past two weeks. We witnessed a movement upwards in crude oil prices from $69 US a barrel, reaching a high of almost $74 US and a slight retreat to Tuesday's price of $71.55 US a barrel. Spot prices for most fuels also showed that there was only slight movement upwards in the prices for refined commodities”, said Murphy.

In the numbers
“The numbers show a slight increase to all fuels, some too close to call whether there will be any movement at all in price. Heating and stove oils show an increase of 85/100ths of a cent, gasoline shows an increase of 1.5 cents a litre while diesel fuel shows a bare one tenth of a cent increase. With the margin of error of three tenths, diesel fuel may in fact show a slight decrease, if no change at all.

Hurricane Bill brings questions
“It remains to be seen whether Environment Canada will see the data on Hurricane Bill and announce it as landing as a category one hurricane. While I haven’t heard if the North Atlantic refinery faced any difficulties with the hurricane the other day, it begs to question if, in the future more hurricanes will race into the coastline of the province affecting the viability of the placement of refining facilities in Newfoundland and Labrador coastal waters. We know what hurricanes did to Gulf of Mexico refineries in 2005 in the wake of Katrina and Rita. I believe that this is going to be a paramount issue in the further development of onshore processing of crude oils in the future if in fact there is going to be a distinct change in weather patterns that will bring hurricanes closer to Newfoundland and Labrador waters.”

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For more information, contact;

George Murphy
Group researcher/Member

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