World financial crisis plays a role

Consumers to catch a break on Thursday

Media release

Conception Bay South, NL, August 9, 2011- High energy prices may have resulted in a slowdown in the world economy and sparked the financial crisis, but the world economy may have a chance to recover, if prices keep dropping like they will this Thursday. That’s according to George Murphy, group researcher for the Consumer Group for Fair Gas Prices.

Reasons why prices will drop

“The havoc and doubt about the world economy and how well the economy has actually been doing started the drop In oil prices that will result in a break to consumers this week”, Murphy said. “High energy costs chew up a lot of disposable income amongst consumers out there, so it’s not unreasonable to assume consumer spending would have been cut with the advent of austerity programming to pay off some country’s debts. Hose methods to pay off debts are part reason why prices have been dropping.”

“While oil prices dropped feverishly, refined commodities didn’t go down as far as one would expect. There’s still a thought out there amongst speculators out there that refined commodities are a place to cut your losses. I believe that prices for refined commodities are still going to show a downwards trend for the next while, if market conditions continue with doubts about economic recovery.

What’s In the numbers

“Heating and stove oils show a drop of 2.98 cents per litre coming for Thursday, while diesel is down by 3.7 cents. Gasoline numbers are taking the biggest drop, now showing down by 6.1 cents a litre to consumers when the Public Utilities Board makes the adjustments early Thursday morning.

“Consumers need this break, and it is welcome, but the investor and speculator needs to know that we still can’t handle prices as high as they will be, and we’re still looking for prices to return to a level we can bear. There really has to come a point where they have to realize that high energy costs cause world financial problems and economic hardship in the first place. Cheap energy means everyone benefits.

Competition in the St. John’s northeast?

Some gas stations in the northeast end of the capital have lowered their prices slightly in response to the entry of Costco in the markets. While prices have been set at a maximum of $1.33.4 by the PUB, some stations are down to $1.31.4 against the Costco selling price of $1.27.4 cents a litre.

“The entry of Costco into the market has done expressly what I had hoped for. Consumers now have a small break coming to them as there is now a spread of some six cents a litre between stations. Finally, we have some competition out there, and we hope it continues!”

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For more information, contact;

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

On Twitter: @GeorgeMurphyNDP

Numbers still showing downwards for this week

Just back in off the water for my last time this year as the campaign is about to go gangbusters, so sorry if I'm a little later than usual.

Yes, I got my quota!

Here's what I have after this week's havoc in the markets. Keep in mind that i have one more day to go before I get the final data:

• Heating and stove oils are down by 2.29 cents per litre.
• Diesel shows a drop of 3.1 cents, and...
• Gasoline shows a drop of 5.8 cents a litre.

I'll be back tomorrow night with the final numbers, but I can say now that all fuels will be showing a drop by the Public Utilities Board this Thursday coming.

Regards,

George

Consumer advisory

Hi to all…

Just letting everyone know that I am tracking the latest round of market trading in oil prices and refined commodities.

There is enough here now to give an advisory to consumers in Newfoundland and Labrador to go sparingly on any purchases of fuels as I am tracking a substantial drop in prices that is in the works for Thursday coming.

Fears of a US economic slowdown and some building of fuel inventories are playing havoc with oil prices worldwide to the point that consumers could see anywhere between five and eight cents a litre down on gasoline prices, especially if oil prices continue their downwards trend this week.

Summarily, the distillates are also starting their way down with heating and stove oils showing 2.2 cents down and diesel down by an even three cents so far. I expect prices to show a downwards trend continuing through to next week when prices are adjusted for Thursday.

Nova Scotia consumers will catch their break at nidnight tonight with the new price setting.

Unregulated markets in the rest of Canada should expect to see prices dip at midnight by close on 4.5 cents a litre again tonight.

By the way. You can catch me on Twitter now @GeorgeMurphyNDP will get you there!

Regards for now,

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

Speculators...Beware!

Consumers here won't see any break at the pumps this week, but numbers for the next pricing session are starting to show the cracks in the economy, so far showing three cents a litre down.

People are also starting to feel the future pinch, if my figuring is right.

Refined commodity prices started to take a downwards turn, in spite of the drop in oil prices, as a result of signs of waning demnd and an increase in inventories of all refined products.

There was also a gain in overall crude oil supply that could be very telling, with peak summer deand and a build in inventory, the prospects for oil profiteering haven't been this low in months. With the talk of "recession" entering the markets again today, it looks like summer is shot to the speculators.

If oil keeps losing value, we just might see the Public Utilities Board have to use the rate adjustment formula to knock back electricity prices again...(Yeah...right!)

Stay tuned....

George

All quiet on the western economic front?

Hi to all…

Short and sweet with all seven days data in.

No big changes again this week as the US debt problem continues to spread uncertainty amongst all markets.

Continued evidence that shows US economic recovery is stalling has also resulted in a faltering price for oil and a drop as well in the Canadian dollar against its US cousin. Even though oil prices have been dropping, the Canadian dollar has also, negating any drop in consumer fuel prices, but also preventing any gains to prices as well.

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

• · Heating and stove oils show a decline of just 11/100ths of a cent.

• · Diesel shows a drop of 6/10ths and…

• · Gasoline shows “no change”.

That’s it for this week.

Regards,

George Murphy

Group researcher/member

Consumer Group for Fair Gas prices

The numbers so far this week...

Don't look for any changes in prices this week, that's if the markets still show "steady as she goes" in tomorrow's trading...

A shaky economic recovery added some downwards pressure and then the debt deal in the US added an up side, negating any possible decreases, let alone increases, to consumers this week so far.

Here's what I have for the price changes this Thursday, with one more day to go:

• Heating and stove oils show down by 19/100ths of a cent.
• Diesel shows down by 6/10ths, and...
• Gasoline shows an even zero to come.

I'll be back tomorrow night with a full breakdown.

Shortages in Nova Scotia

In the meantime, a shortage of regular gasoline in Nova Scotia has some wondering what's happening with prices this week.

The short answer is "nothing so far".

Gasoline prices there are measured the same way as they are here, by NYMEX pricing, and those numbers show no change, like I said. It's a good case for having regulation of fuel prices, to prevent any binge pricing from entering the markets.

The shortage of gasoline is caused by a refinery outage by an Ultramar refinery that was shut down earlier than anticipated by a lightning storm. Power outages, or hits, could cause a refinery to have to take up to a week to restart, but a planned maintenance outage played into the plans as well, and all before supplies could be purchased from elsewhere.
See the CBC story on the shortages here or see it at www.cbc.ca/ns

Ultramar is trying to top up supplies via a New Brunswick refinery through a 'reciprocal sales agreement, a type of agreement that our group considers contrary to the rules of free and open competition. In essence, refineries choose to close up refineries and share from other company's supplies, negating competition between companies.

When the Competition Bureau allowed an agreement we contested in 1998, they told us it was too late to stop it, and the arrangement between companies was allowed to continue.

Just another reason for a new Competition Act and a Bureau that won't be afraid to intervene on the behalf of consumers in this country...

That's it for now!

See you tomorrow evening!

George

Numbers down very slightly

Canadian dollar limits gain in oil prices

Media release

Conception Bay South, July 26, 2011- While oil prices have crept upwards in recent days, refined commodity numbers are showing a slight decline, and that should prove to be to the benefit of consumers when the PUB adjusts prices this coming Thursday. That’s according to George Murphy, group researcher with the consumer group for Fair Gas Prices.

“The Canadian dollar has gained almost two cents against the US greenback this past week, and that allowed for a slight retreat to show in the numbers for this week. All numbers, as modest as they are, are showing downwards for this week’s impending price change,” said Murphy.

The numbers

“Heating and stove oils show a drop of 25/100ths and distillate also shows downwards by 4/10ths. Gasoline shows a drop of 8/10ths of a cent on the way to consumers this time around.”

“Troubles with the deals between the Democrats and Republicans south of the border played heavy against the US dollar as investors became concerned that there would not be a deal between the Republicans and the US President Obama over US Debt. Investors have been pulling their money out of the US dollar as a result and sinking back their funds into other commodities and currencies, like oil and the Canadian dollar.

The Canadian dollar also showed gains against the US dollar as a result.”

“Sovereign debt of countries remains a factor that is playing into the markets as investors are not seeing too many currencies out there that are paying dividends out for the future. Trust in the markets is making a fluid situation that has also run up the price of gold in recent days. Until investors see some trust building from countries in dealing with debt, it’s almost like they’ll be looking for a safe haven to place their funds.”

“From what I’m seeing right now, there is really no place left to run besides gold. Uncertainty remains a factor playing heavy in the markets. Uncertainty means volatility.”

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For more information, contact;

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

Six days in...

Here's what we're all looking for this week with one more day to go:

• Heating and stove oils are down by 19/100ths of a cent.
• Diesel is down by by a half cent, and...
• Gasoline shows a drop of 9/10ths of a cent.

I'll be back tomorrow night with the final numbers for this week's price change.

Regards,

George

Final numbers for Thursday show no change

Hi to all…

All seven days data in now show a zero across the board, if you take into account the margin for error I work with, 3/10ths of a cent.

See how close this one comes, out of curiosity, if nothing else.

Here’s what I have:

· Heating and stove oils show an increase of 2/100ths of a cent.

· Diesel shows a drop of 1/10^th of a cent, and…

· Gasoline shows up by 3/10ths of a cent.

That’s it!

By the way, you can now follow me on Twitter @GeorgeMurphyNDP if that interests you all.

Regards,

George Murphy

A statistical "zero"

As predicted a week ago, don't expect too much change to fuel prices this week.

Keeping in mind my working margin for error of three tenths of a cent for any numbers I do have, here's what's showing for this week:

• Heating and stove oils show a 1/10th of a cent increase.
• Diesel shows no change, and...
• Gasoline shows a half cent upwards.

One day of trading left to get before the final numbers come to fruition, but, right now, there's no change likely to any prices for Thursday, if this keeps up.

I'll let you all know.

Regards,

George