Heating oil prices hit second highest price ever

Consumers to take a substantial hit this Thursday

Media release

Conception Bay South, NL, March 01, 2011- Consumers in Newfoundland and Labrador will get a severe shock when the Public Utilities Board adjusts fuel prices this coming Thursday. That's according to George Murphy, group researcher with the Consumer Group for Fair Gas Prices.

What the numbers say

"As predicted last week, the unrest in the Middle East and North Africa are going to start to cost consumers and business severely for the long term, it appears. I have heating and stove oils to increase by 5.14 cents per litre and diesel to increase by 5.7 cents a litre," said Murphy.

"Gasoline prices are expected to increase by 5.3 cents per litre. All fuel prices will be adjusted to reflect the last week of market conditions this Thursday, and it's been a rough week."

Consumers will feel a bigger bite

"Consumers should expect to see elevated costs for foodstuff and, no doubt will be hearing of the potential for a hike in electricity rates as oil prices are expected to remain elevated for some time as there remains a heavy threat to supply of oil product to the world markets, especially from supply disruptions in Iran and Saudi Arabia. As I discovered about two weeks ago, there is a threat of supply disruptions coming out of OPEC's largest producer, Saudi Arabia, all geared to occur either March 11th or March 20th coming. If that occurs, then we have only seen the tip of the iceberg with prices. They'll have no where to go but up.

"Again, the consumer and business have to ask our government, if we, as a country, should be leaving ourselves open to world pricing pressures like this when this country is a net producer of oil, but exports the majority of it rather than keep it for domestic purposes. This will not be the last time consumers will see the effects of high energy pricing. We are already hearing that fuel surcharges are being instituted, or increased by the trucking companies and airlines. It's a matter of time before the airlines do the same thing, or Marine Atlantic also responds in kind leaving the consumer open to a higher rate of inflation than areas of the country not dependent on heavy transportation costs."

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For more information, contact;

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices