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Tuesday, October 05, 2010

Numbers up considerably
Consumers to get a hit on Thursday

Media release

Conception Bay South, NL, October 5, 2010- The sudden rise in crude oil prices will not be going unnoticed by consumers this coming Thursday when the Public Utilities Board makes the next pricing adjustment. Word of the impending increase in prices comes from George Murphy, group researcher for the Consumer Group for Fair Gas Prices.

“Oil prices have taken a sharp turn upwards this past two weeks buoyed by positive economic news out of the United States and other areas, particularly China. Consumers have already seen crude oil increase by ten dollars a barrel since September 22 and that has also resulted in an increase to the price of refined commodities.
My numbers show that heating and stove oils will increase by 3.62 cents a litre, diesel shows an upwards movement of 4.5 cents, while gasoline is also showing a marked increase upwards by 4.5 cents a litre,” said Murphy.

“I’m not surprised to see another hit like this with oil prices increasing like they have along with the mood of the investor. I’m more surprised that we didn’t see a more substantive increase in prices during the last adjustment period as other markets saw, particularly as crude oil increased by five bucks a barrel the previous week. Numbers moved marginally, but not enough to warrant a large change to prices. What should worry everyone is the speed at which the increase has occurred. Questions have to be asked about the degree of investment in oil that is occurring as weighed against the economic recovery that is actually happening out there. It seems that investors are taking an awful gamble with such a short timeframe for positive economic news that is coming in. Just two weeks ago, there was some question as to how much economic recovery was taking place, and now we see this. It could be disaster for someone and a possible oil price collapse if the word on economic recovery out there was premature.”

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For more information, contact;

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

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