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Tuesday, October 25, 2016

Price changes for Thursday, October 27, 2016

Hi to all,
Here's what I have for this week's price changes:
*Heating and stove oils to increase by 8/10ths of a cent a litre....
*Diesel fuel to increase by 1.1 cents a litre, and...
*Gasoline to increase by 1.2 cents a litre.

Market highlights
OPEC deal falling apart?

Already, there are internal rumblings from within OPEC on how members themselves will be able to keep any production cuts in place.
      OPEC member nation, Iran has been speaking out lately on the prospects of continuing to produce to maintain and increase lost market share from sanctions placed on the country back in 2008. While "joining" with members in signing on to cuts, they don't want to institute any cuts until they reach their previous 4.7 million barrel a day output. They still have a long way to go there yet, but I'm guessing that they're still about 900K barrels off the mark.

Canadian dollar tags consumers
The drop in the Canadian dollar this week connected to lower than expected economic growth, has hit consumers this week with the Loonie losing ground against its southern cousin, the US greenback.

     The Canadian dollar has lost nearly two cents against the US marker in the last three business days, costing consumers ironically 1.2 cents since last Wednesday's measure.

Bennett fiscal update this week has to "give back"...
Remember the provincial budget?
      That was the document that led to a massive increase in provincial road taxes that has cost consumers and businesses alike with lost spending power and lost disposable income to spend.
      It also increased the HST provincial take and increased your fuel prices a rough twenty cents a litre for every litre you bought.
      It was, in essence, the province's own carbon tax...
      But it's time to drop the tax back and even up the playing field again in Atlantic Canada with the latest increase in oil that has added close to $190 million into provincial coffers by the time the next budget rolls around.
     Why drop it back?
     Simple really...
     The price of oil has increased to almost $1 US over what was projected in the budget, successfully adding an estimated $295 million into provincial coffers when the next budget comes down.
     We have paid our fair share and it's time to cut the taxpayers, and business alike, a fair shake.

That's it for this week!

George Murphy
Twitter @GeorgeMurphyOil