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Tuesday, December 14, 2010

Consumers to get a small break at the pumps
Distillates show little movement

Media release

Conception Bay South, NL, December 14, 2010- Consumers of gasoline will get a small break at the pumps this week when the Public Utilities Board adjusts prices this Thursday. That's according to George Murphy, group researcher with the Consumer Group for Fair Gas Prices.

"While oil has remained relatively steady in terms of price there is some question as to where inventories stand as to their correlation to prices. I believe that this retreat in prices is caused by investors belief that consumers have been left with little maneuvering room and high energy prices have started to take a bite out of consumers wallets. That seems to be supported by data from the US American Petroleum Institute (API) report which shows growth in gasoline inventory for the second week in a row. The real proof may come tomorrow when the US government's Energy Information Administration releases its inventory data. If that correlates with the API data, we may see some more retreat in pricing, as well as for oil prices", said Murphy.

What to expect with prices
"I expect no change in heating and stove oils, while diesel shows just a four tenths of a cent drop per litre. Gasoline is showing 2.2 cents a litre down for this week. While there is a build in gasoline inventory, heating and stove oils have been under considerable pressure from increased European demand as a result of cold weather there.

Consumers should question tire burning
"Consumers in this province have been charged three dollars per tire for the past few years to help institute a tire recycling program. I don't think they expect tires to be burned as fuel. It's a one time end use for something that consumers didn't want to see. Consumers expect value for their money, so tire burning doesn't endear anyone in the belief in tire recycling. We expect more bang for our three dollars a tire that we've paid. Why doesn't the government commission a study into other alternative uses for tires besides burning them? That hardly represents a recycling effort in my books. They could have used them as a aggregate in road asphalt as that material has become relatively costly in recent years. It just seems that burning tires doesn't seem to be healthy for the environment , while we recycle roads in recent years. Consumers need to know that they're getting "money for worth" when it comes to paying tire recycling fees."

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For more information, contact;

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

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