Small drop in fuel prices expected

Media release

Conception Bay South, NL, February 2, 2010- Consumers in Newfoundland and Labrador will see a slight drop in fuel prices this week after crude oil prices climbed almost four dollars this past week. That’s from George Murphy, group researcher for the Consumer Group for Fair Gas Prices.

“Consumers can expect to see heating and stove oil drop by 94/100ths, just under a penny. Diesel only shows a half cent down, while gasoline shows down by 1.5 cents a litre,” said Murphy.

“I’m keeping a sharp eye on the diesel number this time around to see if the numbers are going to be in line with the new winter diesel mix. Right now, it appears that the new formula for figuring out diesel prices by the PUB has an immediate four cent a litre impact. While the fuel may meet the new specifications as set out by new federal guidelines for "pourability" in colder weather, it may be a case where the kerosene and diesel mix may not give the same performance to diesel users. I’m encouraging everyone in the transportation sector, particularly the tractor trailer industry, to keep track of their consumption of the new fuel mix and inform us of a drop in performance if it does occur.

“Oil prices climbed sharply after a drop in the US dollar spurred investment in commodities. Some positive economic news south of the border also helped motor up oil prices and that, coupled with weak inventory data, colder weather in the US northeast and low refiner capacity the past week were also factors.”

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For more information, contact;

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