Gas and Oil

2012-01-24T22:24:00.001-03:30

Oil mostly steady

Media release

Conception Bay South, NL, January 24, 2012- Consumers will only see some slight adjustment to prices when the Public Utilities Board adjusts prices this coming Thursday. That news comes from George Murphy of the Consumer Group for Fair Gas Prices and MHA for St. John’s East.

“Numbers show only slight movement in keeping with the movement of oil prices, but you have to ask why prices haven’t moved lower, considering where oil prices are.” Murphy said. “Heating and stove oil prices are projected to drop by 1.47 cents a litre while diesel is expected to dip just 1.6 cents a litre. Gasoline prices are expected to show an increase of a penny on a litre. Numbers don’t reflect any market volatility however.”

Crude steady. But why

“The movement of crude oil, WTI in particular, has dropped a little over a dollar US on a barrel, not a lot in the context of things considering the world geo-political situation. I would have expected that oil prices would be climbing much higher, especially with the situation in the Strait of Hormuz and the ongoing conflict with Iran over its nuclear program. There’s a message in there. Investors and speculators are nervous about something else that I think translates into the world financial situation, particularly in the European union. I think we’re on the edge, especially if the Union can’t reach an agreement with Greece over debt repayment.”

“If you consider that, just today, the European Union has tightened the embargo of imports from Iran, there has been an escalation in tensions, but oil prices have mostly remained steady. They should be going the opposite direction, if things were normal economically, and there was a huge dependence on Iranian crude, but there’s not.

“Secondly: last week saw a considerable drop in crude oil inventories in the United States, but still no substantial movement. If the markets can’t pay attention to those details, then there’s something greater at work here, and no one is talking about it. Between affordability of refined product and tightening credit markets in the European Union, I think something is going to break shortly. But, I think it’s going to have to be substantial either way to bring some relief to consumers. We’re at another breaking point.”

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For more information, contact;

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

2012-01-17T21:52:00.000-03:30

Hi to all…

Short and sweet again this week. No really big changes to pricing.

Here’s what I have for this Thursday, January 19th:

· Heating/stove oils down by 88/100ths of a cent.

· Diesel down by 1.8 cents a litre, and…

· Gasoline is showing down by 6/10ths of a cent a litre.

That’s it for this week!

Regards,

George Murphy

Group researcher/member

Consumer Group for Fair Gas Prices

2012-01-13T08:24:00.001-03:30

Marine Atlantic rate increases heavy-handed and unnecessary

Media release

Conception Bay South, NL, January 13, 2012 – marine Atlantic announced increases to consumers and businesses yesterday to take effect this February, and that doesn’t hold well with George Murphy, group researcher with the Consumer Group for Fair Gas Prices.

“We have always asked for the federal government to insulate Newfoundland and Labrador consumers and businesses from facing artificial increases in inflation rates caused by any rate increase from this important service, but they have yet to step up to the plate to cover Marine Atlantic’s budget to prevent this from happening to consumers. All they had to do was make a small addition to the Marine Atlantic budget to prevent anything being handed down to us, but they missed an opportunity to maintain a level playing field for consumers.” Murphy said.

“My understanding is that inflation over this past year has run well under the four percentage points that Marine Atlantic has increases prices to travelers and business alike. They adjusted rates excessively as the inflation rate sits at 2.9 percentage points presently with inflation rates at 1.9 percentage points for all of 2010. Marine Atlantic needs to explain the four percentage points they have come up with, and the federal government needs to explain why it doesn’t top up the budget of Marine Atlantic rather than treating the ferry service across the Gulf like it is a toll highway. Now, the federal government is compounding inflationary pressures to Newfoundland and Labrador consumers by treating the service as a ‘stand-alone’ service when it simply cannot be. This is our marine highway and it’s time to make the proper strategic investment in it”.

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For more information, contact;

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

2012-01-10T20:22:00.002-03:30

Seven days in...
Numbers up across the board

All the data is in for this week, and the news isn't good this time around.

Here's what I have:

Heating/stove oils show an added 4.04 cents/Lt.
Diesel shows an added 4.3 cents/Lt, and...
Gasoline shows an increase of 2.2 cents/Lt.

Note that the distillate fuels have a two cent disparity with gasoline? That's been happening for a while now. Digging into that just to see if there's anything to it or not.

Market highlights

Iran continues sabre rattling in the Strait of Hormuz as the world continues to ponder deeper sanctions against that middle eastern country's continuing pursuit of its own nuclear program. The possibility of another conflict in the middle east grows daily and that continues to support oil prices.
Talks of economic recovery are renewed as the Bank of France is reporting that their Business Sentiment Indicator shows a positive outlook amongst manufacturers there. Manufacturing also increased in France during November month adding an important 1.1% gain in the country's industrial output.
Is there an improvement in the US economy? Some are thinking that the US economy is on the way back after gaining an additional 107,000 jobs in November. Pretty important factor in supporting oil prices.
Strikes in Nigeria have shut in some oil production but oil has not increased dramatically as a result. In fact, it may be other outside worries like the European Union financial situation that may be preventing run-away pricing for oil. We'll keep an eye to this one.

That's it for this week!

Regards,

George

2012-01-09T20:13:00.002-03:30

Refined commodities start upwards

Call this "early notice"...

Looks like prices will be up this coming Thursday, January 12/12, as refined commodity prices continue to follow the last week rise in oil prices.

Here's what I have with just six days data. I will be back tomorrow night with the final numbers on what to expect, but, let's just say that this week won't be pretty:

Heating/stove oils show an added 3.91/Lt so far.
Diesel prices are up by 4.4/Lt, and...
Gasoline shows "up" by 2.2 cents a litre.

I guess from this my buddy in his tanker is going to be busy for the next couple of days!

Regards,

George

2012-01-03T20:32:00.000-03:30

Hi to all…

Short and sweet again this week as the holiday season in the markets comes to an end, although next week should be more interesting.

Here’s what I have for this week:

· Heating, stove oils and diesel fuels all show an added 1.0 cents a litre upwards, and…

· Gasoline shows just an added two tenths of a cent upwards…

However…

Watching closely the situation in the Red sea where the state of Iran is causing some concerns in the markets with its sabre-rattling in the Straits of Hormuz. Oil prices increased $4.13 a US gallon on concerns that Iran will halt all shipments of crude oil through the important export route that sends out close on 17 million barrels of crude oil to the world markets. That concern also translated in refined prices increasing today to show a potential increase coming to consumers for next week, if there is no improvement in the geo-political situation there, or other mitigating factors that may enter to play their part in the markets.

That’s it for this week. I’ll be back again next week with something more substantial to everyone than what the holidays have allowed for…

Regards for now,

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

Twitter: @GeorgeMurphyNDP

2011-12-27T21:11:00.002-03:30

Hi to all…

Short, sweet and simple this time around as the holidays have all but scattered market data this time around.

The data I do have is as complete as it can be for this week. It is a little weak as there is an important market trading day from yesterday on the missing list, but here’s what I do have:

· Heating and stove oils show an added 1.33 cents a litre upwards.

· Diesel is also up by 1.6 cents a litre, and…

· Gasoline is up by 4.0 cents a litre.

I guess while Big Oil was in the spirit of giving last week, they’re taking this week.

I’ll be back to the regular routine again next week. I hope you are all enjoying your Christmas holiday!

Regards,

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

Twitter: @GeorgeMurphyNDP

2011-12-20T22:00:00.001-03:30

Consumers to get a Christmas present

Numbers show a break for consumers

Media release

Conception Bay South, NL, December 20, 2011- The Grinch has turned his back from taking away Christmas for consumers this week with all fuel numbers pointing at a decrease for all fuels when the Public Utilities Board sets prices this coming Thursday. That news comes from George Murphy, group researcher for the Consumer Group for Fair Gas Prices.

“While the markets have been volatile, they have been mostly down the past week, with oil prices retreating from last week’s $100 US a barrel to this week’s average of $95 US a barrel. While the Canadian dollar took a hit, we’re still going to see something off at the consumer level as refined commodity prices also retreated.” Murphy said.

The numbers

“Consumers can expect to see heating and stove oils drop by 1.88 cents a litre, while diesel shows a drop of 1.6 cents. Gasoline prices are down by two cents a litre, but again, there’s no accounting here for market volatility, and the market news jolts everywhere uncertain.”

Markets are spotty

“There’s a tremendous amount of uncertainty out there. We’re still seeing European Union financial woes, considerable worry over the world economy with China’s reduction of output of consumer goods being one chief indicator. Also entering the market fray are the world geo-political situation with North Korea and ongoing concern over the Iranian nuclear program.”

I expect the markets to continue their market volatility for the next while. There hasn’t been market stability in the last few years, especially with the threats that persist worldwide. For now though, with the onset of the Christmas season, we get an early Christmas present, and that’s one thing that we can take pleasure in, albeit, it’s just a small break. We’ll take it”

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For more information, contact;

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

2011-12-13T20:24:00.000-03:30

Gasoline steady

Distillates to take a slight drop

Media release

Conception Bay South, NL, December 13, 2011- Short and sweet for this week as the numbers show almost no change in gasoline prices. Numbers in this case show changes that measure one hundredths of a cent to gasoline prices. That’s according to George Murphy, group researcher for the Consumer Group for Fair Gas Prices.

Heating and stove oils show a drop of 1.7 cents per litre, while diesel shows a downwards movement also, but by 1.8 cents a litre.

Highlights

Markets remain edgy as the European Union still tries to contain the financial problems associated with burgeoning debt-loads of member European nation countries.

A build in US petroleum inventories last week was indecisive in helping investors make decisions on investing in oil. All major refined fuel groups showed builds in inventories this past week that probably were indicative in giving a clue as to what direction consumers were headed with fuel purchases. It seems that, in this case, consumers were being kept away amidst rumours of future economic problems matched with consumers spending in other areas besides fuels.

Tensions in Iran over its nuclear program still await entry into speculators minds as a possible disruption in supplies in the future , but that is being offset by investors’ fears of consumers real spending intentions, especially after warnings about the possibilities of economic slowdown occurring in other areas like China. Their manufacturing sector is slowing, and that’s a good sign of a slowdown in consumer spending.

That’s it from me for this week.

Regards for now!

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

Twitter: @GeorgeMurphyNDP

2011-12-06T22:12:00.000-03:30

Oil steady at $100 a barrel this week

Market recovery?

Media release

Conception Bay South, NL, December 6^th, 2011- Consumers in Newfoundland and Labrador will not see too much of a change in prices as market volatility continues, but the fact that oil has stayed above $100.00 a barrel for the full week may be an indicator of where investors are seeing the world economy heading. That’s according to George Murphy, group researcher and member of the Consumer Group for Fair Gas prices.

“While the markets are still showing their volatility, oil prices have remained above the $100 US a barrel mark for the first time in months, and that may be an indicator that investors are seeing some market recovery. An unexpected gain in US jobs data this past week, the latest of several reports, may be a harbinger of things to come, that’s if the European Union can sort out its financial woes.” Murphy said.

The numbers

“Prices are showing very modest changes that are reflecting the performance of oil prices this past week. While oil increased by a dollar a US barrel, there was only a slight movement upwards by gasoline over the same period. Gasoline shows an added 1.4 cents a litre coming to consumers this Thursday while heating and stove oils show a drop of 1.2 cents a litre. Diesel shows a drop of 1.4 cents a litre as well. Of course, there’s no accounting for volatility in my numbers.”

Markets waiting for a January test drive?

“If we do see more signs of market and economic recovery, we’re probably looking at a scenario that can best be described as a runner at the starting gates. We’re just waiting for the sign that sets the gun off with investors running with whatever they can put their money into the fastest, and that next sign has to come from Europe where austerity programming and debt-load has to be dealt with. If Europe can say they’re handling a difficult financial situation and they prove it, then China is sure to follow with consumers elsewhere starting to spend again. We just may have to wait and see what consumers spend like in January to find out how tough it is on the consumer. We already know they’re going to spend in December.”

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For more information, contact;

George Murphy

Group researcher/member

Consumer Group for Fair Gas Prices

2011-11-29T21:13:00.000-03:30

Distillates drop

Gasoline mostly steady

Media release

Conception bay south, NL, November 29, 2011- Consumers in Newfoundland and Labrador won’t see too much change with gasoline prices this week. That’s according to George Murphy of the Consumer Group for Fair Gas Prices.

The numbers

“Oil prices may be up this week, but it’s not showing too readily with gasoline numbers even though the number is up just slightly”. Murphy said. “Gasoline is showing up by just 6/10ths of a cent a litre, while the distillate fuels are down. Diesel is showing down by 1.7 cents a litre with heating and stove oils also down by 1.5 cents on a litre.”

“There’s still a lot of volatility in the markets. Even though we witnessed a few signs of economic improvement with Black Friday sales showing new records, we’re also seeing signs for next week, showing the opposite with the chance for more European Union countries like Belgium and France facing the possibility of a downgrade in credit ratings that could be the first signals to higher international interest rates and a world economic slowdown. It’s absolutely terrifying out there.”

PPO offices in Grand Falls-Winsor close

The Petroleum Pricing Office in Grand Falls-Winsor has closed with the realization from the PUB that improvements in technology have made the offices there redundant. Four jobs have been lost in the transition to the work now being done in the St. John’s offices of the Board, but, from what I am told, the former staff of the offices, while on contractual work for the PUB, have all been looked after. “It may be a necessary loss to technology. I know that I have been doing my own work with the numbers for fourteen years now, and I guess the PUB realized the job could be done in St. John’s without the added expense to the consumer. Don’t look for any big drops in prices as a result of the closure however. The total cost of regulation in this province only added another .0007 of a cent to fuel prices in the first place. I wish the laid- off workers the best in their future endeavors.”

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For more information, contact;

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

2011-11-22T22:48:00.000-03:30

Numbers down

When will the volatility go away?

Media release

Conception Bay South, NL, November 22, 2011- Oil may be working up again from recent drops in pricing, but the numbers consumers will be looking at will hardly reflect that this week when prices are forecast to drop. That’s according to George Murphy, group researcher for the Consumer Group for Fair Gas prices.

“While oil has seen ups and downs this past week, it’s prices for refined commodities that have been steadily down over that time-frame, which is a little unusual. The markets are extremely nervous, and that will keep oil prices right where they’re at for the time being.” Murphy said.

The numbers this week

“Heating and stove oils are forecast to drop by 2.06 cents a litre, mitigating last week’s increase, while diesel numbers are also forecast to drop by 2.4 cents a litre. Gasoline prices are forecast to drop by 2.6 cents a litre, bringing retail prices in the immediate St. John’s northeast down to $1.18 a litre, if Costco follows suit.”

Analysis for the week

“Markets continue to reflect the problems some countries are having in dealing with mounting debt, with this week’s focus turning to the United States and another European Union country, France taking the spotlight. It was seen by investors that France was a standing example of what a stable European banking system should look like, but here are concerns, especially if France cannot absorb some of the losses in earnings from their part of the European Union bailout programs. While there is a lack of faith in the European Union debt situation, let alone the US problem coming to light again, don’t look for any runaway oil prices anytime soon. A retreat in oil prices may be exactly what the world economy needs to aid in its recovery. The truth about unaffordable oil has yet to play its hand this time around.”

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For more information, contact;

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

2011-11-15T20:23:00.001-03:30

European Union finds stability?

Enter higher prices

Media release

Conception Bay South, NL, November 15, 2011- Consumers in Newfoundland and Labrador will find cold comfort with government releasing details of its home heating rebate today with the markets and oil prices rebounding this week. That news is from George Murphy, group researcher for the Consumer Group for Fair Gas Prices.

“We’re at a point where the markets have bounced oil prices upwards again, mainly on speculation of the European union’s member nations Italy and Greece replacing their leadership, and some positive US economic news.” Murphy said. ‘However, the markets are turning refined commodity prices to a point where they’re starting to bite into consumers pocket-books again with heating and stove oil prices rising again to almost $1.03 a litre in the St. John’s area, and up close to $1.23 for a litre of heating oil in Gaultois. They’re again making heating prices unaffordable to most, regardless of what relief measures that government is undertaking today.”

First, the numbers

“Numbers are showing a 2.69 cents a litre increase for heating and stove oil prices and an added 2.8 cents a litre on diesel fuels. Gasoline shows a 2.0 cent a litre drop, but a break in prices may be short-lived if oil prices continue their way upwards. With energy prices rising, consumers are going to feel the pinch at the wrong time of the year.”

Government announces heating rebate program

“While government is enjoying almost 600 million in royalties, according to Minister Marshall’s statement some weeks ago, we’re looking at consumers getting the fickle end of the stick that comes with higher energy prices, and a lot of consumers out there simply can’t afford some energy costs anymore. The rebate itself potentially only covers a third of a tank of heating fuel and needs to see another examination of what it sends out to consumers who need it. What’s even more alarming is a statistic tied with last year’s program that showed almost 66,000 homes received the rebate, a $16.5 million dollar payout! The number of recipient homes here is an alarming statistic and adds focus to the problem of sky-rocketing energy costs, particularly for those on fixed incomes or pensions.”

“Hopefully, the markets will turn the opposite direction again and send prices lower, but the promise of economic turn-around has to be worrisome for at least some people out there, particularly for those left behind. It’s for just this example that the Occupy movement has reason, and some have good reason to worry this winter, so far.”

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For more information, contact;

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

2011-11-14T20:21:00.003-03:30

With one day left to go...

Hi folks...

With six days of data in, and just one more to go, here's what I have for this coming Thursday...

Heating and stove oils show an added 2.56 cents a litre.
Diesel shows an added 2.7 cents a litre, and...
Gasoline is down by 2.0 cents a litre.

Sounds odd I know, but the focus has definitely shifted to the distillate group of fuels. With inventories down last week, it seems the sharks in the markets are circling again.

I'll be back tomorrow night with a final figure on what to expect for this Thursday.

Regards,

George

2011-11-10T19:51:00.002-03:30

To a Newfoundlander lost on the July Drive

His blue puttees stained the colour of Mother Earth,
and face down to her grip.
And she, reaching back to never let him go.

Thousands of miles away,
on a rocky shore,
he sees his mother on the beach,
collecting her small bounty of silver and black fish.

She's not knowing for the moment
that she will never see him again...

*************

**I know I just post fuel pricing items here, but I felt that this weekend I would make that exception. It was so many that died for me to pursue that right.

Wherever you are this Remembrance Day weekend, be safe and take the time out to remember!

George

His blue puttees stained the colour of mother earth, and face down to her grip. She, reaching back to not let him go.
Thousands of miles away,on a rocky shore,
he sees his mother, on the beach,
collecting her small bounty of small silver and black fish.
She's not knowing for the moment that she will never see him again...
...

2011-11-08T21:33:00.001-03:30

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.”

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For more information, contact;

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

2011-11-01T20:36:00.001-02:30

After Greek decision…

Markets ask “What’s next?”

Media release

Conception Bay South, NL, November 1, 2011- Consumers in Newfoundland and Labrador won’t see much change at the distillate level after this week’s performance with oil prices, but gasoline will be dropping. That’s from the group researcher with the Consumer Group for Fair Gas Prices, George Murphy.

“My margin for error is three tenths of a cent, and my numbers for distillate are showing that there may be no change in prices with the distillate group of fuels. Heating and stove oils show an added 17/100ths of a cent increase in price while diesel shows an increase of just 1/10^th of a cent. Gasoline is showing a drop of just 1.5 cents a litre for this Thursday”. Murphy said.

“The markets have been thrown in a state of flux again with the European Union bailout plans for Greece. Yesterday, Greek president Papandreou threw water on a bailout plan that took months to put together when he inexplicably told the media that he would put the bailout plan to a referendum to the Greek people. It’s widely believed that the right turn by the Greek president will put Greece closer to a default situation on it’s plans to pay off debt and puts into question the viability of some European banks. Any default will likely throw the European banking system into crisis.”

‘I believe he’s laying out a challenge to his opposition in Greece. He has nothing to lose by putting pressure on his opposition in Greece to be forced to agree with the bailout plans, but he’s walking a fine line with his own people who would have to face most of the austerity measures at the same time. If he wins his mandate through winning the referendum to accept the terms of the bailout, then he will help ensure government stability in Greece while the country works through austerity measures. He’s also laying the fate of the world economy and the European banking system at the feet of the people of Greece. It’s going to be a hard sell to the Adriatic country, but it’s being done democratically in the place where it all started, and the people of Greece will have the ultimate say in whether Papandreou will survive politically.

“In the meantime, Greece also is holding rising prices at bay for now. Any likelihood of rising prices have been mitigated, at least for the time-being, as the situation in Europe takes shape in the coming weeks. While there may have been some slight improvement in the world economy in the past couple of weeks, there’s a new awakening of the gravity of the financial system in Europe that threatens t sink everyone back into recession again. It may be the one positive influence on saving consumers money this winter, the fact that Greece is calling the shot this time around. Certainly, this takes away any impetus on price increases in the short term.”

-30-

For more information, contact;

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

Twitter: @GeorgeMurphyNDP

2011-10-25T20:49:00.001-02:30

Weird week on the markets

Oil prices up but refined commodities down

Media release

Conception Bay South, NL, October 25, 2011- In spite of the price of oil rising by almost seven dollars US a barrel this week, consumers could be looking at a drop in gasoline prices instead. That comes from George Murphy, group researcher and member of the Consumer Group for Fair Gas Prices.

“It’s true. Numbers here are showing that, in spite of an almost seven dollar US climb in West Texas Intermediate(WTI) oil prices, consumers should see a 4.2 cent a litre drop at the pumps.” Murphy said. ”Of course, there is no accounting for any volatility that may be there that the numbers aren’t reflecting, but there is certainly a break for gasoline users there.”

“I don’t believe that I have ever seen this happen on the markets before. It looks like investors poured their money back into oil and treasury bonds south of the border, and didn’t put cash into refined commodities. I think they’re looking for solid ground, and the news from China and Japan on their economic growth seems to have signaled a return to WTI inventory numbers. It may be a case where investors didn’t want to see consumers driven to conserve in a forced run-up in prices as well, knowing the weakness of the markets. Refined commodity prices actually fell back after two weeks of gains. Other oil types like Brent, actually stayed relatively steady this past week in comparison.”

“The Canadian dollar also gained in value against the US greenback, reaching par earlier today before retreating to rest just slightly lower than its southern counterpart. That helped consumers gain back some of what was lost when the Canuck buck got burned against the US dollar when oil prices retreated just a few weeks ago. At that time, refined products rose in prices while oil prices fell.”

“Next week will be different. I expect to see some recovery in refined commodity prices with investors throwing money in just to catch up to where oil prices are going. No doubt, consumers will have to have a say in where prices will go. It’s probably time for consumers to impact inventory numbers again and send that collective message.”

-30-

For more information, contact;

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

2011-10-18T20:16:00.002-02:30

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.”

-30-

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!

2011-10-17T21:53:00.002-02:30

Six days in...

Hi to all,
First off, thank you for all the emails of congrats I received after last weeks win at the polls.
I'll keep this one short and sweet until tomorrow night, as I know some of you are waiting patiently to decide what to do with your purchases.

Here's what I have so far:
Six days in:

Heating/stove up by 2.66 cents a litre.
Diesel up by 2.6 cents, and...
Gasoline shows an added 8/10ths of a cent a litre so far...

I'll be back tomorrow night with the final breakdown for Thursday.

Regards,

George

2011-10-12T08:48:00.001-02:30

Oil prices up can't be good...

Hi to all…

I didn’t have time to get at the news of the week in the markets, or break down what’s been happening, let alone why it happened. Last night's election, I guess you could say, distracted me!

I will hopefully, be back to form for next week.

I am formally out of the loop on oil issues for this week…

But, I do have numbers. They’re not good.

First appearance, oil prices are up over the past week by about $6 US a barrel. That’s a clue…

Keep in mind as well that heating oils are now being calculated under the winter heating blend, so, my heating oil numbers will be off somewhat from what will actually happen as a result of kerosene in the winter heating blend. The stove oil numbers will remain the same.

Here’s what I have:

· Heating/stove oils are up by 1.98 cents a litre.

· Diesel numbers show a 1.5 cent a litre increase, and…

· Gasoline shows an added 4.7 cents a litre.

That’s it for now!

Regards,

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

2011-10-04T23:42:00.001-02:30

Again, my apologies for being late posting. It's a long day on the campaign trail!

Canuck buck takes it on the chin

Oil drops on financial and economic news

Media release

Conception Bay South, NL, October 4, 2011- Consumers would be surprised to find that in spite of a drop in oil prices, there’s no huge changes to fuel prices. In fact, there’s a slight increase to gasoline. That’s according to George Murphy, group researcher with the Consumer Group for Fair Gas Prices.

“What’s more apparent in this week’s data is how much of a beating the Canadian dollar has been getting against the US greenback. We’ve lost close on seven cents since September 21^st . This pricing session saw us lose four cents against the US dollar and that figure is central in figuring out price changes. The loss is that extensive against the US dollar that, while numbers in US terms are down just slightly, they’re showing ’up’ for Canadians.’ Murphy said.

“Seven days data shows heating and stove oils to drop by just 15/100ths of a cent for consumers while the US price per gallon has dropped nine cents a US gallon. Diesel is projected to increase by a half penny.”

“Again, I will be cautious here. My numbers may be off as there’s plenty of market volatility out there! Six days of data shows the US price for gasoline down by seven cents a US gallon but a 1.4 cent a litre increase to Newfoundland and Labrador consumers as a direct result of the drop in the Canadian dollar. If the dollar had held all week, we would have seen a drop of close to two cents instead. That’s all in spite of oil prices for West Texas Intermediate dropping by $6 US over the pricing session. It’s not easy being too closely connected with the US economy.”

Fears over a default by Greece and the bailout plans for other European Union nations continues to rage in the markets and the economic news out of the US doesn’t help the situation much either. Bernanke’s comments about the US being perilously close to recession added fears of a drop in consumer spending sent oil prices downwards. If consumers aren’t going to spend, then a drop in demand in refined products isn’t far behind.

“What we need to see now is the Canadian dollar to stop falling and we’ll see refined commodity prices begin their retreat as well.”

-30-

For more information, contact;

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

2011-09-27T23:56:00.001-02:30

Not long in from the campaign, so sorry this is being posted at midnight tonight. Please forgive me!

Markets more volatile than ever!

Consumers catch a break- At least this week

Media release

Conception Bay South, NL, September 27, 2011- Consumers in Newfoundland and Labrador will catch another small break at the pumps, although market volatility is planting doubt on how long drops will last. That news comes from George Murphy, group researcher with the Consumer Group for Fair Gas Prices.

“I can’t remember another time when the European Union financial situation has caused this much fluctuation in oil prices, but that and lingering concerns over the possibility of another recession has the markets in turmoil. There simply is no accounting for it in my numbers even. Markets are that much in a state of flux that they’re into collapse one minute and recovery the next.” Murphy cautioned.

“In the meantime, my numbers show heating and stove oils to drop by 1.12 cents a litre and diesel to drop by just 9/10ths of a cent. Gasoline shows a downwards turn of 2.3 cents a litre based on the market activity for the past seven days. These numbers may have been more substantial than they are except for the almost four cent drop against the US greenback.”

“Inventory reports out of the United States Energy Information Administration may tell the future of prices for the next few weeks when the report is released tomorrow afternoon. Any build in gasoline inventories may be a warning that consumers and business alike are starting to curtail spending, particularly for transportation fuels and that demand is petering out. We could be in a transition into recession if that is the case.”

-30-

For more information, contact;

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

2011-09-22T00:22:00.003-02:30

“Tax off tax” explained

I know there’s some confusion out there, so I figured I’d send along a little explanation of the NDP proposal.

Let's say the basic price of gas on the New York exchange was 70 cents a litre. You then add 10 cents federal excise and 16.5 cents provincial road taxes to that. Total here is 96.5 cents a litre, right?

Ok…

Now we add the HST, which is made up of 8% provincial plus 5% federal taxes (13%)

The problem we found here, and the Canadian taxpayers Association did also, is that the province charges their cut of the HST on the 96.5 cents, which is taxes on the basic cost of gas already.

The NDP proposal would adjust the formula used to just calculate the HST on the base product price of 70 cents, and not the 96.5 cents.

Based on the province estimates of raising 173.3 million in gas taxes this year, the NDP move would bring the total gas tax collected to amount close to $140 million or so, almost back to 2004 levels I think.

Everyone in the province recognizes the need for taxes. It's not dropping any part of the HST or it's gas tax component. It is simply adjusting how the tax is applied, and that makes it more fair for consumers here.

If you live in another province, you might want to check and see how the tax is applied in your jurisdiction.

The Consumer Group for Fair Gas Prices always included the word “Fair” in its title, and it’s only right that the government should be playing fair with consumers too.

Sometimes it’s not all the fault of “Big Oil”. Sometimes a government has culpability in high prices to consumers too.

Hope this helps!

Please pass this on so everyone has a clear understanding!

On a secondary note...

I think everyone here also knows that I am running to be the next Member of the House of Assembly for St. John's East in the October 11th general election. I have had a couple of you dropping emails on where to send a donation, and I'm grateful for your thoughtfulness on this. They are kindly accepted.

Regards,

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

2011-09-20T22:50:00.001-02:30

Sorry I'm so late!
Out on the door-steps all week!

Consumers to catch a small break

Winter heating projection out

Media release

Conception Bay South, NL, September 20, 2011- Consumers should see no real increases in heating oil prices this winter, if the world financial and geo-political situations stay as they are. That’s from George Murphy, group researcher with the Consumer Group for Fair Gas Prices.

Winter heating projection

‘There are some factors that are playing well into the picture being formed on heating oil prices. Evidence is slowly mounting that tells me there is no room for any increase in prices, simply based on world economic, consumer and financial factors”, said Murphy.

“While investors and OPEC members are waiting for word of a possible drop in world demand based on the European Union member country’s ability to deal with debt problems and the fact that the US could possibly be entering a recessionary period. If that is the case, then it looks like there’s no reason to see heating oil prices increase beyond where they are now, barring any other outside factors. Continuing builds of distillate inventories should hopefully insulate consumers from any added increases in price at least until December month. What we see right now, essentially, is what we’ll get, but there is room for prices to drop back, if economic factors from Europe and the US come into play.”

“we’re also dealing with prices that are robbing consumers of disposable income. Prices are really high as they are now with consumers having trouble paying the prices as they are. That itself is a factor in inventory building, as consumers will only buy as much as they need to get by, and not as much as they need to be totally comfortable. Prices need to drop for all fuels in order for everyone’s economic situation to improve.”

“The other clue that there shouldn’t be any upswing in prices comes strangely from OPEC members Libya and Saudi Arabia. Both countries are calling for world oil prices to remain stable between $80 and $100 US a barrel. Generally, what the Saudis say is paid a lot of attention by oil market profiteers, and with a new government in Libya being seen as more moderate, you can bet that they’ll have some influence as well on oil prices and what consumers will pay for the immediate future.”

“Don’t get me wrong. There are still going to be people out there that will still need to fall back on rebate programs, but the news here is that the rebate programs are still in place along with the removal of the provincial portion of the HST. We’re just going to have to start working on the federal government for the removal of federal taxes on heat now. It could be a longer road to get there, but not insurmountable.”

Numbers are in.

Here’s what I have for this Thursday’s price change:

· Heating and stove oils show down by 79/100ths.

· Diesel is down by a penny, and…

· Gasoline is also showing down, but by 2.7 cents a litre.

Market Notes

· OPEC member nation Libya is again exporting oil onto the world markets. Numbers show the country has exported a rough 160,000 barrels a day in the last month as the war-torn country strives to revive its oil industry. It is not known when the country will again achieve its original OPEC quota of 1.5 million barrels a day.

· Also from Libya, the country’s National Transitional Council (NTC) will try and arrange an increase in quota from OPEC as the country tries to recover from war. The Libyan NTC is also looking at oil prices sustained around the same mark the Saudi Arabian government is looking for; prices between $80 and $100 US a barrel. OPEC will meet to discuss the Libyan request in a December meeting in Vienna.

· Oil is still trading between $80 and $90 US a barrel as the European Union financial situation, namely from member countries like Italy and Greece, both play a role in future demand for oil. It’s thought that austerity programming and a possible world economic slowdown will stymie demand for oil products. It seems the markets are in a “wait and see” pattern as investors are waiting for proof that the worst is behind us, and that hasn’t happened yet.

That’s it for now!

Regards,

George Murphy

Group researcher/member

Consumer Group for Fair Gas Prices

2011-09-15T22:17:00.001-02:30

Bloggers Choice Awards

Well!

I'm so honoured!

Got a little note that tells me that the blog has been nominated in the Travel/Business category for the Blogger's Choice Awards!

You can vote and leave a comment here.

Can't believe it. I'm beside myself, as they say.

George