Price changes for Thursday, April 20th, 2017

Hi to all,

Here are expected price changes for this Thursday:

*Heating, stove oil and Diesel are all expected to increase by 3/10ths of a cent a litre, and......
*Gasoline shows a drop of a cent a litre.

   Keep in mind my margin for error of 3/10ths of a cent a litre.

Market highlights

Saudi's say "too soon"
In what some consider to be a major shift in OPEC's thinking, the Saudi Arabian oil minister says it is "too soon" to talk about extending the cuts OPEC and non-OPEC members agreed to back in November.

   The six month agreement to cut production is a good reason why some have seen the price of oil rise to present levels, but it was expected by most that the agreement would be extended for another six months beyond May.
   Stay tuned as OPEC meets again in Vienna May 25th.

Province to cut back on gas taxes

The budget has some good news for consumers who were hoping to see a retreat in gasoline prices.

   Largely unexpected, the provincial government made the decision to lower gas taxes by 8.5 cents a litre (9.8 taxes in) by June 1^st, and a further four cents a litre (4.9 taxes in) as of December 1^st, while the remainder of the initial increase will be reviewed in the Fall.

   I was initially hoping that the budget would lower gas taxes by five cents a litre, so, this move was surprising, but at the same time, I was pleased to see the retreat in taxes immediately before summer, and well after the upswing in summer gasoline prices.

   It will also serve to put a little more disposable income into the hands of consumers as well as transportation-based small businesses.

Regards for now,

George Murphy
Twitter @GeorgeMurphyOil