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Tuesday, August 24, 2010

Drop in prices for consumers on the way

After a hectic week of oil trading, consumers will see a small drop in prices that would have been considerably more had there been some stability in the Canadian dollar.

There wasn't.

The Canadian dollar lost almost three cents against its US counterpart this week cushioning the drop to fuel prices here in Canada somewhat. If the dollar had to remain stable, we would have been looking at close to a three cent a litre drop across the board.

Here's what I have for this Thursday:
  • Heating and stove oils will drop by 12/100ths of a cent.
  • Diesel shows "down" by 4/10ths of a cent, and...
  • Gasoline shows a drop of 8/10ths of a cent per litre.

With the Canadian dollar tied so closely to the price of oil, it dropped along with oil prices over the last couple of weeks. The Canadian dollar is known as a resource, or petro-dollar because of the relation between it and oil prices.

Hurricane Danielle
I'm not anticipating any effects to fuel pricing because of Hurricane Danielle. Right now it has been downgraded to a tropical storm, but is expected to pick up steam again and reaching hurricane status once again according to the National Hurricane Center. Its five day track shows it to be well off the coast of North carolina heading in a generally northerly direction on Sunday coming, well away from important oil infrastructure. There should be some concern to Atlantic Canada however as its track points it directly toward the US Eastern Seaboard and Eastern Canada.

That's it for now!


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

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