Numbers confirm it
Substantial drop in prices coming to consumers

Media release

Conception Bay South, NL, August 17, 2010- Consumers in Newfoundland and Labrador will see a substantial drop in prices at the pumps when the Public Utilities Board adjusts prices this coming Thursday. That’s according to George Murphy, group researcher for the Consumer Group for Fair Gas Prices.

“Markets in the United States are again reflecting the actuality of the economic situation, all against word of possible economic recovery. Most indicators are showing that there is a possibility that the United States is about to enter a second recession, or ‘double dip’. Consumer confidence is a record low and housing sales have plummeted indicating that consumers there just don’t believe that they’re out of the woods yet. As a result of this, oil prices took a pounding last week and that’s reflected in refined commodities as well.” Murphy said.

“All the data is in and it’s good news for the consumer as we head toward the end of summer. I expect heating and stove oils to drop by 2.95 cents, diesel to drop by 3.2 cents a litre. The good news on gasoline shows a drop of 3.7 cents a litre on the way for Thursday morning.

‘The real good news just hasn’t hit us yet. Here we are close to the end of summer and still no major hurricanes have developed that could have the potential to threaten Gulf of Mexico production. We’re fast approaching the five year anniversary of the Katrina and Rita hurricanes of 2005, which was an even more active hurricane year than this one so far. It seems the predictions of major storms this year is off a little, and will continue to be, with luck! If we can get past the middle of September without a major hurricane threat in the Gulf, we should be in line to see a further retreat in oil prices.”

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For more information, contact;

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