Oil prices down

Refined commodities remain "fluid"

Media release

Conception Bay South, NL, February 08, 2011- Consumers in Newfoundland and Labrador won't notice much change at the pumps when the PUB adjusts prices again this coming Thursday morning. That comes from George Murphy, group researcher with the Consumer Group for Fair Gas Prices.

"While oil prices have retreated by almost four bucks US a barrel, refined commodities have been volatile. I've seen all numbers retreat by several cents US a gallon, only to recover at the end of this session. We started out at $2.46.35 US for a gallon of gasoline at the start of this regulatory period, for example, only to witness a retreat in the price and then a recovery to yesterday's trading at $2.47.67 US a gallon. Overall, that means a small drop in gasoline prices to come", said Murphy.

"I think everyone knows now that refined commodities are traded no differently than anything else on the markets. Part of the price of oil may be associated with any acquisition costs, but that's about it. I have never seen this much volatility associated with refined petroleum product as what I have seen with the news the past three weeks. It's like the speculators don't know where to park their dollars."

"It's odd, really".

What consumers can expect to see Thursday

"I expect heating and stove oils to increase by just 11/100ths of a cent, diesel to increase by 8/10ths and gasoline to drop by 7/10ths of a cent. Heating and stove oils are showing 'neutral' as they are within my three tenths of a cent margin for error, just too close to zero to predict which way they'll go on Thursday".

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For more information, contact;

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices