Recession fears easing?

Prices up on speculation

Media release

Conception Bay South, NL, November 8, 2011- Consumers in Newfoundland and Labrador can expect to see a slight movement upwards in prices this coming Thursday as oil prices continue to rebound. That comes from George Murphy, group researcher and member of the Consumer Group for Fair Gas Prices.

“Oil prices are up another $2.70 US a barrel this week on news of the latest US jobs report and an American Petroleum Institute (API) industry report that shows a drawdown in most inventories of refined product. Add to that, reports out of the European Union that Prime Minister Silvio Berlusconi of Italy is set to resign after another European Union bail-out.”

“The numbers are showing an added 1.45 cents per litre upwards for heating and stove oils, 1.8 cents a litre up for diesel prices and an added 1.5 cents a litre upwards for gasoline. Keep in mind my margin for error of three tenths of a cent and the fact that we’re now faced with a different blend for heating oils for the winter heating mix. ” Murphy added.

Costco reigns

Consumers of Costco couldn’t believe their eyes on Sunday when they looked at pump prices. Prices there, I am told, were at a low of $1.20 a litre, while prices in farther regions checked in at $1.28.9 cents a litre. Most stations in the areas closer to Costco continue to try to maintain market share with prices at most stations in the immediate northeast areas ranging close to $1.26.9 cents a litre. “Costco has become a vital factor in getting the major gas retail chains to compete for market share. I hope the trend continues. It was a long time coming, and consumers are seeing the benefits of Costco entering the gas retail marketplace.”

-30-

For more information, contact;

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices