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Tuesday, April 06, 2010

Numbers are up on all fronts
Consumers to see increases to all fuels

Media release

Conception Bay South, NL, April 06, 2010- Consumers in Newfoundland and Labrador will see a substantial increase, the first in weeks, when the fuel regulator sets prices this coming Thursday morning, that’s according to George Murphy, group researcher for the Consumer Group for Fair Gas Prices.

What’s in the numbers?
“After the latest run-up in crude oil and refined product prices, we will see an increase to all fuel prices I measure. Heating and stove oils show an increase of 2.54 cents a litre on the way, while diesel shows an added 3.1 cents per litre. Gasoline prices will also take a hit, increasing there by 2.2 cents a litre,” said Murphy.

“The recent rise in the Canadian dollar has insulated us somewhat from this price setting round. If we had been dealing with last years Canuck Buck, we could be talking about an added 11 cents per litre on gasoline. US consumers are looking at a fourteen cent a gallon increase as it stands now for the last week’s performance in the markets.

Trouble ahead
“Some of this data is starting to suggest future trouble for some consumers. We’re looking at an increase in distillate prices that means an elevated price for heating and stove oil product when, traditionally; prices have been declining at this time of year. Will we see the possibility of fuel surcharges coming to play into consumers pocketbooks through increased airline fuel surcharges and another possible adjustment to Marine Atlantic ferry rates as a result of the meteoric rise in crude oil and refined product prices? While the numbers to substantiate any increase may not be there now, there is a guarantee of increases in fuel surcharges to consumers as the rising cost of crude becomes a factor. Consumers may see some relief in the coming weeks if petroleum pricing becomes a pocketbook issue but right now, the market has momentum that seems to suggest a July, 2008 repeat. The collapse of oil prices could be close at hand again.”

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For more information, contact;

George Murphy
Group researcher

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