Consumers will see a small hit this week
More Increases could be on the way

Media release

Conception Bay South, NL, August 4, 2010- Consumers in Newfoundland and Labrador will see some slight increases to consumer prices this week when the Public Utilities Board adjusts prices. That’s from George Murphy, group researcher with the Consumer Group for Fair Gas Prices.

“Oil prices have increased by close to six dollars US a barrel this week, so there is no doubt that we’ll get tagged at the pumps. The meteoric rise in oil prices, particularly over the last two business days, has also meant an increase to refined commodities. We are, however, being insulated somewhat by the rise in the Canadian dollar against the US greenback. That has kept the increase in refined product low compared to what is normally seen with any major increase in oil prices,” Murphy said.

“I expect heating and stove oil prices to increase by 92/100ths of a cent. Diesel will increase by 1.3 cents a litre, and gasoline to increase by 1.8 cents a litre, putting gasoline prices in the summer range of $1.10 and $1.14 a litre.

“The numbers are small but the last two business days have brought the averages up for distillates, meaning that we haven’t seen the last of possible increases to come there. It’s my belief that there’s a possible two cent a litre increase for next week, provided oil and distillate prices remain elevated for the next seven days, and barring any unforeseen changes to market conditions. Already, that’s beginning to form a picture of heating and stove oil prices being elevated at the start of the winter heating season. I’ll have a better handle on what to expect this winter later this month. It could also mean possible troubles with diesel fuel prices. With Newfoundland and Labrador heavily dependent upon the use of diesel to power the transportation sector, it could mean higher prices for consumer products because on increased transportation costs. Higher oil prices may be good for the provincial treasury, but not necessarily for the consumer.”

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For more information, contact;

George Murphy
Group researcher