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Thursday, September 01, 2011

What happened?
I simply don't know...Yet

Hi to all…

I simply don’t have the numbers here to justify this increase to consumers, plain and simple.Prices that consumers were paying last week were set on the basis of a base price of 73.25 cents a litre, based on my numbers.

For the past week, (this week’s price setting) the numbers averaged 72.89 cents a litre, a drop of 4/10ths when you also account for taxes.

Here’s the numbers for what I had this past week for your reference:

· August 24th: 74.51 /Litre

· August 25th: 72.40 /Litre

· August 26th : 71.87/Litre

· August 27th: 71.87/ Litre

· August 28th: 71.87/Litre

· August 29th: 70.91/Litre

· August 30th: 76.86/Litre

It is only during the day of August 30th that there was any kind of upwards movement. That was simply because of the effects of Hurricane Irene, which investors used as an excuse for bumping up spot prices on the NYMEX. There is simply no justification to this move upwards in prices this week. One refinery closed as a precaution and there was no major damage to any oil company infrastructure. The refinery that closed, closed voluntarily as a precaution and two others reduced production during the storm.

Based on that last days number for the 30th, I was making initial projections that consumers would be possibly taking a hit next week for the continuation of gasoline trading high for this adjustment period for the next price change, as the trend has been set.

On first appearance, the PUB has raised prices for Big Oil to account for a “supply disruption” as they attempt to protect Big Oil’s monetary losses for this price change. It appears that they’re trying to insulate Big Oil from taking any monetary losses for this week when, they have done consumers a dis-service.

If there is, I don’t have it and the people of the province needs an explanation of the methodology used by the Public Utilities Board in setting prices this week.

I’m calling for the immediate appointment of a consumer advocate to protect the consumers interests in the setting of prices. I’ve been doing this for fourteen years now, watching the markets and the PUB setting prices, and, as far as I’m concerned, the evidence shows otherwise when it comes to what consumers should have received at the pumps this morning.

Frankly, I’m disgusted. I’m sticking by my numbers…

Regards,

George Murphy

Group researcher/Member

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