European banks step in

Relief from the debt crisis for now?

Media release

Conception Bay South, NL, July 12, 2011- Consumers will again experience an upwards price adjustment to all fuels this week when the Public Utilities Board adjusts prices this coming Thursday. That’s according to George Murphy, group researcher and member of the Consumer Group for Fair Gas Prices.

“The European union banks have stepped in to buy up some of the debt from some of the EU’s member countries and that has led to some relief in the financial system of some troubled Euro union countries like Portugal, Spain and Italy. Oil increased this week as a result of a more optimistic economic mood, only set off earlier in the session with a less than stellar US jobs report,” said Murphy.

“Numbers show an increase to heating and stove oils of 3.28 cents a litre with diesel rising by 4.4 cents a litre. Gasoline numbers show an increase as well by 3.6 cents a litre. There’s still a lot of volatility in the markets as there are factors preventing any meteoric rise in prices. The relief of some of the Euro member’s debts by the European Union banks may be just a temporary measure until the troubled countries get a handle on how to best resolve their various debt problems.

“About to enter the picture in the next month or so are debt problems from none other than the United States which lies some $14 trillion in the hole. With a less than spectacular jobs report added to the possibility of Obama having to introduce his own austerity measures to handle the US debt-load, we could have a scenario for future drops in oil prices as consumers adjust to higher taxation that will affect consumer spending. The possibility is there that the Chinese government already recognizes the signs of a slowdown and they are trying to increase interest rates to stymie an ever-increasing rate of inflation. Manufacturing there is slowing as a result.

“I don’t see a steady increase in fuel prices in the immediate future. We’re mere weeks away from the first Atlantic hurricane as an excuse for investors, and we’re almost through the half-way point of the summer driving season. It looks like the projection of gasoline below $1.40 a litre for the summer is holding for now. I’ll keep my fingers crossed for the remainder of the season!”

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For more information, contact;

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices