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Tuesday, July 13, 2010

Numbers up slightly
Canadian dollar pares a larger increase to consumers

Media release

Conception Bay South, NL, July 13, 2010- Consumers in Newfoundland and Labrador will see a slight upwards adjustment in pricing when the PUB adjusts prices this coming Thursday. That’s according to George Murphy, group researcher for the Consumer Group for Fair Gas Prices.

“Oil prices increased close to seven dollars US since the last pricing adjustment and the Canadian dollar also increased in value with its US counterpart right along with it. The result is an increase in all prices I measure, but not a great one, considering that the dollar also gained close to three and a half cents also. That alone saved the consumer an average of close on 1.5 cents on every litre of fuel sold. Instead of looking at one cent a litre up this Thursday for gasoline for example, we could have been looking at a 2.5 cent a litre increase in prices instead,” said Murphy.

For this Thursday then, I expect gasoline to increase by one cent a litre, heating and stove oils to increase by 1.3 cents and diesel to increase by 1.5 cents a litre. The numbers are still hanging just under what was predicted early spring for this summer’s pricing of gasoline of $1.10 a litre. As surprising as it may seem, distillate numbers are still higher for this time of year, probably as a result of diesel’s usage as a main transportation fuel in Europe and elsewhere. It still brings some concern here with the advent of winter usage of distillates. There’s very little time left for the numbers there to come down before investors put winter pricing pressures to bear. Here’s hoping the numbers go down further for the rest of the summer!


For more information, contact;

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

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