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

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

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...
...

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

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.”

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For more information, contact;

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

Twitter: @GeorgeMurphyNDP

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.”

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For more information, contact;

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

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.”

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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!

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