Gasoline steady

Distillate prices up

Media release

Conception Bay South, NL, October 18, 2011- Consumers in Newfoundland and Labrador will not see a real big change in gasoline prices this week, but distillate prices? Well, they are another story with all numbers up. That news comes from George Murphy, group researcher with the Consumer Group for Fair Gas Prices.

“It’s easy to see that we’re entering the winter demand season for heating and stove oils. We’re looking at a 2.68 cent a litre increase to stove oil prices, which could be a chief indicator of where heating oil numbers are going this week. Consumers in the northeast Avalon area could be looking at a full dollar a litre by this Thursday. With diesel also showing an increase of 2.7 cents a litre also, it’s not hard to figure out exactly where investors have placed their money”. Murphy said.

“Gasoline is only forecast to increase by 5/10ths of a cent this Thursday. That’s how much influence traders are wielding over distillate fuel right now. All that, in spite of a three dollar US per barrel increase in crude oil this week.”

“While crude oil inventories largely increased last week, supplies of distillate and gasoline all reported drops to inventories, again indicating an increase in consumer demand for that week, it leaves one to wonder why we’re looking down the barrel of the heating price gun. No doubt, the chase for profits is also going to drive prices to the point that investors are going to bleed the market dry amidst the laws of diminishing returns. They could burn out if consumers don’t buy at high prices. So far, they’re used to the idea that a cooling fall season will bring consumers in droves to make fuel purchases, and the shipping of consumer goods shortly before the Christmas buying season is also putting upwards pressure on distillates like diesel fuel. They know, and they’re playing consumers for all they can get before the economy gets soaked again and consumers stop spending.”

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For more information, contact;

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

PS: Did you notice gas prices around St. John's this past week? Prices for gasoline were as low as Ultramar's $1.27.9 cents a litre on Higgin's Line to Irving's price of $1.28.3 on Frecker Drive. In the meantime, the ESSO on Topsail Road was selling gas for $1.32.3 cents a litre.

Credit Costco with forcing the issue with the other majors out there, so much so, that stations across town are beginning to wield to the pressure!