Call it an early Christmas present
Numbers still down for all fuels

Media release

Conception Bay South, NL, December 15, 2009- Consumers will see an early Christmas present this Thursday morning when the PUB moves to adjust prices based on the last two weeks of market activity, that’s from George Murphy of the Consumer Group for Fair Gas Prices.

“The last day of market trading are in and the predictions will hold true that we will be getting a break on all, if not most, fuels that the Pub regulates,” said Murphy, group researcher for the group.” We’re looking at a significant drop in gasoline prices of close to four cents a litre at the pumps. The heating and stove oil numbers show a drop of 1.2 cents a litre while diesel shows a drop of 1.3 cents a litre is coming.”

“The number for heating and stove oils doesn’t look like a lot but it does signal what I see as happening out there on the markets. Big Oil is dealing with refineries that are starting to come back on-line after fall maintenance and a surplus of inventory as we wade deeper into the winter heating season. If we have plenty of inventory on hand, and there is also refining of the product, it is understandable why any price increases would be a rarity at this time of year when prices would normally be climbing. We’re still not witnessing a pick-up of distillate demand at the same time as hearing about a pick-up in economic recovery. That part of the equation is not registering as a positive thing to commodity investors and I’m seeing a withdrawal in investment in that commodity. Any pick-up in refiner capacity tomorrow may signal further breaks for consumers to come. The least that we have here is the possibility that winter heating and stove oil prices may very well have already peaked for the time being. Of course, anything can happen overnight to change the situation as I see it.”

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For more information, contact:

George Murphy
Group researcher
Consumer Group for Fair Gas Prices