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Wednesday, March 28, 2012

Gasoline tracks upwards again

Distillates drop

Media release

Conception Bay South, NL, March 27, 2012 – Consumers in Newfoundland and Labrador will see prices at the pumps increase again this week as the traditional build-up to the summer driving season sees investors signal the approach of warmer weather. That news comes from George Murphy, group researcher for the consumer group for Fair Gas Prices.

Nine cents off the record

“Gasoline prices on the New York Mercantile Exchange averaged close to 82.8 cents a litre last week, compared to this week’s 86.11 cents a litre. The difference here is coming to a pump near you,” Murphy said. “It means that consumers will pay close to 3.8 cents a litre more by Thursday morning, and this one hurts with prices for regular hitting $1.44 a litre for the regulated maximum price, if the numbers work out right.”

“Distillate prices are down this week, but barely, as the focus of investors has been seen to switch from the winter heating oil demand season to a focus by investors in transportation fuels. Heating and stove oils show a drop of 1.11 cents a litre, while diesel fuel is projected to drop by a mere 6/10ths, but even that gives you the scope of how much resistance there is to any downward movement in distillate prices. Investors are reluctant to show their hand. But with the coming of the end of winter in the US northeast, the writing was on the wall for winter heating oil prices, and hence, the drop in distillate prices.

“How high prices will go are going to depend on how demand for gasoline plays out in the next month leading up to the US Memorial Day weekend. Consumers are going to have to conserve and make their collective voices heard by making an impact on inventories. Right now, demand is about two percent higher than the same timeframe last year, so prices are moving up along with demand. Consumers will have to send a collective message unless the effects of high energy prices start telling on the economies of business first.”

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For more information, contact;

George Murphy

Group researcher

Consumer Group for Fair Gas Prices

Tuesday, March 20, 2012

Gasoline moves higher

Hi to all,

Short and sweet again this week. There’s just not enough days in the week to get a full synopsis done on oil these days.

Here’s what I have for this week’s price changes:

  • · Heating and stove oils show an added 16/100ths of a cent.
  • Diesel prices show 6/10ths of a cent up, and...
  • Gasoline shows an added 2.2 cents a litre upwards.

Oil prices showed an increase of close on $3 US a barrel this week, before today’s sudden drop back to $105.00US a barrel. While oil prices showed a retreat, the same did not show in my numbers for refined commodities. US spot prices actually climbed from $3.12.20 a US gallon to Tuesday’s $3.20.06 a US gallon, with the average, of course, coming as an increase to both US and Canadian consumers.

That’s it for now,

Regards,

George Murphy

Group researcher

Consumer Group for Fair Gas Prices

Twitter: @GeorgeMurphyNDP

Tuesday, March 06, 2012

Numbers down

Oil: To drop further?

Media release

Conception Bay South, NL, March 6, 2012- Consumers will see a slight drop in fuel prices this week as renewed concerns over consumer demand and the Greek financial crisis again have entered the investor markets. That news comes from George Murphy, group researcher for the consumer Group for Fair Gas Prices and MHA for the district of St. John’s East.

“Consumers will see the result of investor worries entering the markets again this week, and all in spite of escalating war talk against Iran and its stance on its nuclear programming. However, the European Union has offered to restart negotiations on Iran’s nuclear program, and that helped spark the slide. Numbers here show a drop of 2.24 cents a litre for heating and stove oil users is on the way for Thursday, while diesel numbers show a drop of an even two cents a litre,” Murphy said.

“Gasoline is projected to drop by 2.5 cents a litre as well with the market retreat. We have oil down by four dollars a barrel over the last week on an increased worry over a possible Greek default on the European Union bailout. March 20th is fast approaching when the Greeks have to make their first payment on their loans, and that’s making investors as well as the banking sectors nervous.”

“Add to all this, the fact that the American Petroleum Institute also reported a 4.5 million barrel build in oil inventories this week that may be signifying a drop in demand for oil. The real news should come from the Energy Information Administration tomorrow when they report on overall oil and gasoline inventories. If those numbers show a build, then we could be looking at an extended retreat in oil prices that could translate into further consumer relief. Here’s hoping!”

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For more information, contact;

George Murphy

Group researcher

Consumer Group for Fair Gas Prices

Twitter: @GeorgeMurphyNDP