International news might bite consumers

Just a note to let everyone know that I am watching the situation in Libya play itself out on the international markets the last couple of days. It's not the best news economically, but should prove to be a wake-up call to everyone dependent on Middle East crude supplies, including Canada.

First, the numbers...

Here's what I have so far, keeping in mind that the markets were closed and I have no data for today, except the above futures prices that would "add' another possible 2.6 to gasoline numbers, and the same to the heating, stove and diesel numbers. I'll leave it to one's imagination what the cash numbers would be as a result of today's news.

Either way, the numbers are up.

• Heating and stove oils show an added 17/100ths of a cent.
• Diesel shows an added 6/10ths of a cent, and...
• Gasoline shows up by 1.4 cents a litre so far.

In the news

So far, crude oil (WTI) has been affected by events overseas, all in spite of the markets being closed for the Presidents Day holiday in the US. Electronic trading has seen WTI settle at $92.75 US a barrel, an increase of $6.55 a barrel US. crude oil has not been this high since September, 2008.

Heating oils and gasoline are also well up in trading, up by 11 and ten cents a US gallon respectively.

No doubt, consumers will be hit with increases in price across the board this week as supply disruptions have a very good chance of playing out in the Libya protests. According to Bloomberg, the Nafoora Oil Company operating in Libya have already shut down operations and production because of a general strike, shutting down almost 100K of oil production.

Libya is OPEC's eighth largest producer and exporter of oil, supplying the world with 1.6 million barrels per day, or one per cent of production. That might not seem a lot, but with the possibility of disruptions occurring here with other oil companies that are now pulling international staff from Libya, we could be headed for a record week in oil pricing that could rival the Katrina hurricane event. What happens here could happen in Iran and other OPEC producing countries that could send the world back into recession again, well ahead of any economic recovery.

Warnings here for Canada

While Saudi Arabia may be able to pick up any production that would cover the losses due to disruptions of production in Libya, it does not have the spare refinery capacity to cover off any disruption in production from Iran, and that spells trouble for the rest of the world dependent on OPEC production, including Canada. This country still imports some Middle East oil, while, at the same time, being self-sufficient in oil production. While we could recover any losses in domestic consumption of oil by using our own sources of supply, the government needs to ensure that Canadian consumers and industry are covered here with sufficient domestic supplies before any further exports are allowed to other countries dependent on our resources.

Pretty simple really. Don't sign any more deals that ensures a safe supply to outside countries before you use your own resources for your own people first.

That's it for now!

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

Just keep in mind that anything could happen in the next day or two with this extraordinary situation in the Middle East.

Regards,

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

First time for everything

Short, sweet and simple

Not much change in the numbers at all.
Here's what I have for this week with all seven days data now in:

• Heating and stove oils show a drop of 38/100ths of a cent.
• Diesel shows "no change". Zero movement, and...
• Gasoline shows an added 3/10ths of a cent.

In other words, the numbers are pretty much within the confines of my working margin for error and there may, in fact, be no change at all for any of the fuels I measure.

First time I've ever run into this scenario.

That's it for this week!

Regards,

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

Numbers remain steady

Just a quick note here. Here's what I have for my "six day". Keep in mind that I only have a "five day" for my diesel number:

• Heating and stove oils show a 42/100ths of a cent drop.
• Diesel shows a 1/10th of a cent drop, and...
• Gasoline shows an increase of 3/10ths of a cent a litre.

I'll be back again with the final numbers tomorrow night, but don't expect too many surprises. Not much change showing so far!

Regards,

George

Oil prices down

Refined commodities remain "fluid"

Media release

Conception Bay South, NL, February 08, 2011- Consumers in Newfoundland and Labrador won't notice much change at the pumps when the PUB adjusts prices again this coming Thursday morning. That comes from George Murphy, group researcher with the Consumer Group for Fair Gas Prices.

"While oil prices have retreated by almost four bucks US a barrel, refined commodities have been volatile. I've seen all numbers retreat by several cents US a gallon, only to recover at the end of this session. We started out at $2.46.35 US for a gallon of gasoline at the start of this regulatory period, for example, only to witness a retreat in the price and then a recovery to yesterday's trading at $2.47.67 US a gallon. Overall, that means a small drop in gasoline prices to come", said Murphy.

"I think everyone knows now that refined commodities are traded no differently than anything else on the markets. Part of the price of oil may be associated with any acquisition costs, but that's about it. I have never seen this much volatility associated with refined petroleum product as what I have seen with the news the past three weeks. It's like the speculators don't know where to park their dollars."

"It's odd, really".

What consumers can expect to see Thursday

"I expect heating and stove oils to increase by just 11/100ths of a cent, diesel to increase by 8/10ths and gasoline to drop by 7/10ths of a cent. Heating and stove oils are showing 'neutral' as they are within my three tenths of a cent margin for error, just too close to zero to predict which way they'll go on Thursday".

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For more information, contact;

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

Just as well to say "little change" this week

Numbers are showing little change in prices this week, albeit there is a small slide beginning to show in the numbers that correspond to the slide in oil prices so far this regulation period.

Here's what I have so far:

• Heating and stove oils show up by 1/10th of a cent.
• Diesel shows up by 7/10ths, and...
• Gasoline shows down by 7/10ths of a cent.

While refined commodity prices started high, continuing the trend set at the end of last week's price setting, they did start to recede against the numbers to average at almost a "break even" for the week so far.

What is the cause of this?

Seems that there was some inventory building last week, but the big news seems to be the slight easing of tensions in Egypt. Oil has been experiencing a slight retreat over the weekend on the news of the lessening of a possible interruption in the shipping of crude through the Suez Canal and the million barrel per day Cairo pipeline, both of which, if affected, could disrupt almost three per cent of world production.

We'll keep you posted on the final numbers to expect tomorrow night.

Regards,

George

Middle east turmoil plays into markets

Media release

Conception Bay South, NL, February 01, 2011- Consumers in Newfoundland and Labrador will see some effects from the political turmoil in the Middle East when the PUB adjusts prices this coming Thursday, but not as much effect as one would think. That comes from George Murphy, group researcher with the Consumer Group for Fair Gas Prices.

Egypt situation plays heavy

"I think everyone has been watching the situation in Egypt develop in the news over the past week or so, and I'm no different, having watched it all unfold with a different reason: it's effect on oil prices. It has been interesting, none the less. And as word spreads in the Middle East of people trying to address the needed political changes in their respective countries and protests mount, there has been a marked increase in the price of oil as a result, but not the same effect on refined commodities, which for some, may be surprising," said Murphy. "Commodity prices have increased slightly, but a higher Canadian dollar has insulated us from exceptional increases in prices for the most part.

Egypt is a lightning rod for the whole Middle east, where almost forty per cent of the worlds oil comes from. There is a good chance that this upheaval will continue into other oil producing nations and that may well prove to be a harbinger of higher oil prices yet to come. Egyptian market worries are caused by the possibility of short term shipping and supply problems that come from a possibility of the closure of the Suez Canal and not directly linked to a shortage in production. If these mass protests hit countries like Iran or another OPEC producer nation for example, we could see run-away pricing. Prices may very well stay high as well because we simply don't know the ramifications of a change in government and what eff3ect it would have on peace in the Middle east. As much as the present government in Egypt may be hated, it did somewhat ensure a peace brokered between other Muslim nations and Israel, for example.

Oil prices could be entering a term of uncertainty.

The numbers for this week

"This week, I have heating and stove oils to increase by 1.73 cents per litre, diesel to increase by 1.7 cents a litre and gasoline to increase by just 7/10ths of a cent. US consumers have seem a 16 cent per gallon increase to heating, stove and diesel fuels and a 14 cent per gallon increase to gasoline prices in the last week since January 25th in comparison. While refined commodity prices have also increased, particularly distillate fuels, they remain under pressure from weakening consumer demand and higher inventories, in spite if the cold spell in the US northeast. These prices could be much higher than what we are seeing right now, except for the key word 'demand' playing into the refined commodity markets.

"There still is a huge concern over where heating and stove oil prices are heading however. Prices are close to the second highest reached, the highest being $1.24 a litre in the spring of 2008 when oil was working up to hit a record of $147 US a barrel by July, 2008. Heating fuels are again unaffordable for most at a critical juncture of the heating season when temperatures are at their coldest and there's a promise of more cold weather to come.

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For more information, contact;

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

Markets play with Egypt and Tunisia unrest

Hi to all...

Just letting everyone know that I have been watching the markets closely with all the turmoil in Egypt and Tunisia.

So far, even though the price of oil hit $90 US a barrel again, it hasn't had a large impact on petroleum prices, even though they are up slightly as a result.

Here's what I have for this regulation period so far:

• Heating and stove oils are up by 1.2 cents.
• Diesel is up by one cent a litre, and...
• Gasoline shows "up" by 3/10ths of a cent.

The next two days will be the measure of what to expect, but so far, the unrest in Egypt and Tunisia hasn't had a lot of effect on refined commodity prices.

Regards for now,

George Murphy

Group researcher//Member

Consumer Group for Fair Gas Prices

Prices steady for this week

Word from Saudi Arabia may bring price relief Next week

Media release

Conception Bay South, NL, January 25, 2011- Consumers in Newfoundland and Labrador will see some changes to pricing this week when the PUB moves to adjust prices, but they may not experience any major pricing relief until next week. That's from George Murphy, group researcher with the Consumer Group for Fair Gas Prices.

"The numbers for this week don't show a lot of movement, but the news out of Saudi Arabia may be enough to play into downwards pricing pressure for next week," Murphy said. "This week, I have heating and stove oils up by 1.03 cents per litre, diesel up by 4/10ths and gasoline shows a modest drop of 9/10ths of a cent.

However, I'm watching the last day of this regulation period with great interest as the Saudi's have entered the news, affecting spot prices during the last day or so. My numbers are already showing a drop in all prices coming for next week on the news from the markets today, and I'm hopefull that this pricing trend will continue for the next week bringing some pricing relief for the next price setting. Consumers may want to gauge their purchases accordingly."

Saudis announce possible production increases

"The real break for consumers may come into play next week as, late yesterday, the Saudi Arabian energy minister, Ali Al Naimi said that the Saudi Arabian government does not want to see oil prices break the $100 US per barrel mark. In his statement to Bloomberg, he talked about the possibility of high oil prices doing damage to the world economy, something we've been talking about for a long time now. What he also said that was so important was the fact that other OPEC countries were prepared to boost production to keep prices below the $100 US per barrel mark and that fact alone tells the world that even OPEC is nervous about the price of high oil on any recovering economy.

Signs that world economic recovery has stalled

"News from London was not good today with the British government announcing that their economy contracted by a half percentage point and gross domestic productivity also unexpectedly shrank during the fourth quarter. Match that with numbers out of the US that signaled a stall in residential housing prices in the US and we have good reason to see why oil prices have also stalled. No one has the money to buy, and there are good signs that no one can afford high energy prices.

Also out of the US, there is expectation tonight that there will be a build in US crude oil inventory that may also be signaling a stall in consumer demand. I believe that what I predicted earlier is now coming to fruition: that high energy makes economic recovery that much harder. It's just unbelievable that world leaders find it so hard to believe too."

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For more information, contact;

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

Steady as she goes...

The six day is in for this week, and there's not much change reflected in the numbers.
At least, not yet...

• Heating and stove oils show an increase of 1.18 cents a litre.
• Diesel shows an added half penny, while...
• Gasoline shows a half penny down.

What I am watching for this week is a second week of inventory building that, paired with the news out of Saudi Arabia just today, will amount to a drop in prices in the coming weeks.

Saudi Arabia today announced the need for keeping prices below the $100 US a barrel mark. That could signify that the Saudis are ready to ramp up production to keep prices down.

We can all live in hope!

I'll be back again tomorrow night with the final numbers on what to expect this Thursday.

Regards,

George

Consumers to get tagged

Refined commodity prices increase with positive economic news

Media release

Conception Bay South, NL, January 18, 2011- Newfoundland and Labradorians will again be getting tagged with higher energy prices this week as refined commodity prices have increased along with speculation that consumer demand will ramp up along with economic recovery. That news comes from George Murphy of the Consumer Group for Fair Gas Prices.

"As I predicted before last week's changes in pricing, I called the shot on what consumers could expect if the oil market trend kept pace with the positive economic news that was out there, we can now confirm that consumers will be feeling the pinch of the penny again this week", said Murphy. "I expect heating and stove oils to increase by 2.12 cents, diesel to increase by three cents a litre, and gasoline by the predicted 9/10ths of a cent on a litre. Again, all on speculators believing that consumers will still consume more as a result of the positive economic news out there in the markets. There's a strong belief out there that demand will remain up, and possibly increase from present levels.

Distillate fuel numbers up

"Distillate prices that would include diesel, heating and stove oils, as well as kerosene and other jet fuels are all up in price. It's my belief that consumers will get a double whammy here in the province as transportation costs begin to grow with the end result being costs handed back to consumers in the form of fuel surcharges. Just last week most major airlines south of the border increased charges on domestic fares. It's just a matter of time before the airlines do it here, all in spite of an increased Canadian dollar.

"If distillate fuel prices are up sharply, then we can also expect to see marine transportation fuel prices to also be up, meaning the possibility of increased charges and ticket prices to Marine Atlantic users. It's really time that the people of the province ask the federal government for stability in Marine Atlantic's rates so we won't have to see any increase to the price of consumer goods that come in via the Gulf of St. Lawrence route. If this an election year, the province should ask for extra money to be added to the budget of Marine Atlantic expressly for the purpose of keeping stable shipping rates to the crown corporation so consumers and business here doesn't have to deal with added costs associated with higher marine diesel or orimulsion prices."

Layton wants the HST off heat

The leader of the New Democratic Party of Canada, Mr. Jack Layton, is asking that the federal government to drop the federal component of HST off all forms of heat in the next budget, something for which the consumers in this province and Nova Scotia have spoken about loudly in the past. If the federal government removes their taxation component and the province removes theirs, adding up to a total of thirteen per cent taxes on heat, then it would go a long way to putting some disposable income back in to the hands of everyone.

Layton has also asked for the feds to reinstate the home retrofit programs of the past that could be used as an economic recovery and environmentally sound means of energy conservation.

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For more information, contact;

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

Predictions holding up

You may remember from last week's post that I mentioned the possibility that numbers from late last week would translate into increases at the consumer level for this week.

Numbers still show that after six days of data, with US markets closed today for the Martin Luther King Day holiday we don't have to wait for data from today's trading.

Here's what I have so far, with one day of data coming tomorrow:

• Heating and stove oils show a 2.02 cent per litre increase.
• Diesel shows an added 2.9 cents at the pumps, and...
• Gasoline shows an added 9/10ths of a cent.

Spread the word. No dodging it again this week!

I'll be back tomorrow night with the full synopsis on what to expect for Thursday, but it looks like what we see here.

Regards,

George

Small increases expected

Positive economic news pushes oil upward

Media release

Conception Bay South, NL, January 11,2011- Consumers in Newfoundland and Labrador can expect to see some slight increases to petroleum product pricing this week when the Public Utilities Board moves to adjust prices. That's from George Murphy, group researcher for the Consumer Group for Fair Gas Prices.

"Expect to see some small, upwards moves in prices this week, but there is a warning coming from the markets for next week already", said Murphy." I expect heating and stove oils to increase by just 36/100ths of a cent, diesel to increase by 1.2 cents and gasoline to increase by just 9/10ths of a cent this Thursday morning.

Why prices may increase next week

The real news could come next week. While numbers have been insulated somewhat by the growth in value of the Canadian dollar, there is a heavy investment in oil that has occurred in the past day that could signify a larger increase to consumers next week for distillate fuels that I am watching closely. Already, heating and stove oils, as well as diesel prices, are showing up by two cents a litre for next week, while gasoline shows just an added 8/10ths of a cent. Positive economic news along with an industry report that shows a very modest increase in crude oil inventory.

The United States Energy Department raised its 2011 average crude oil price a couple of dollars today, citing a positive upturn in the economy as reasons why demand for crude oil and refined products will be up. The report also states that heating oil prices will be up higher than forecast initially, increasing the average price per US gallon to $3.28.

Why oil prices could run away

"While I don't think it's entirely possible for oil prices to run away again as they did in 2008, I could very well proved wrong on my guess. The possibility of them running away could do more damage to a recovering economy than benefit one, and economies should be exercising caution. Already with burgeoning economic development in China and India, increased consumer demand from consumers, and the ease for which investors can get money to invest from their respective lending institutions, it can be seen why oil prices could gain such heights again.

"However, I think investors have to show an ear of caution here, and the same warnings have to be shown on the part of lending institutions that may be part of the problem that speculators themselves have been blamed for. You can hardly blame an investor, but if the markets collapse again as a result of an artificial increase in the value of any product, in this case oil, then the whole lending institution business worldwide has to be taught to loan on the basis of reality, let alone on speculation. Lending institutions can also be party to economic collapse as well as party to any recovery."

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For more information, contact;

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

Numbers are in

The seven day is in...
Here's what I have for this weeks price changes.

There may be some variance as a result of the holidays, but either way, the numbers for this week are down.

I'll be back to having more details rather than just the bare numbers starting again next week. In the meantime, I hope the holidays were great for everyone.

Here's the numbers:

• Heating and stove oils show a drop of 1.65 cents per litre for Thursday coming.
• Diesel shows a drop of an even two cents a litre, and...
• Gasoline shows down by 2.7 cents per litre.

Back again next week!

Regards,

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

The "six day" is in.
Numbers are down

Just a short note here, with all the holidays and all. I should be back to a regular routine again next week, please God!

Here's what I have for the "six day"report:

• Heating and stove oils show 2.11 cents a litre down.
• Diesel shows 2.1 cents down, and...
• Gasoline shows a drop of 2.8 cents a litre on the way for Thursday.

Back again tomorrow night with the final data on what to expect for this Thursday coming!

Regards,

George

Price spike warning!

After Christmas blues, or positive economic news from the world markets, either way, numbers show prices moving up this week!

Here's what I have for the "six day":

• Heating and stove oils show an increase of 1.42 cents.
• Diesel shows an added 1.5 cents a litre, and...
• Gasoline shows an additional 3.2 cents to prices for Thursday coming.

I'll be back tomorrow night with the full seven days of data, but it doesn't look good for the week, regardless of what happens tomorrow.

Catch you here then!

George

Update!

The "seven day" now shows some slight change in the numbers for this week. Here's what I have:

• Heating and stove oils to increase by 1.37 cents.
• Diesel to increase by 1.4 cents, and...
• Gasoline to increase by 3.0 cents, a drop of two tenths from yesterday's numbers.
  

Numbers up for most fuels

Media release

Conception Bay South, NL, December 21, 2010 - Consumers in Newfoundland and Labrador will see a slight upwards movement in prices when the PUB adjusts prices this Thursday. That's according to George Murphy of the Consumer Group for Fair Gas Prices.

"There hasn't been a big move in oil prices, but refined commodity prices are another thing, albeit they haven't moved a great deal. I expect heating and stove oils to increase by 1.13 cents a litre, diesel to increase by an even penny, and gasoline to increase by 1.2 cents a litre. These numbers are up slightly as a result of an increase in the US dollar against the Canadian currency with the canuck buck losing almost a cent and a half against its US counterpart," said Murphy.

"Distillates remain under heavy pressure as a result of colder weather in both the US and Europe and that has helped to support oil prices as well as support those fuels from the distillate group of fuels, namely diesel, heating and stove oils. As we enter into the depths of the heating season, I expect that upwards pricing pressure will continue to support prices where they are at present."

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For more information, contact;

George Murphy
Group researcher/Member
Consumer Group for Fair Gas Prices

Numbers are up slightly

This weeks numbers are up slightly amidst signs that the US dollar has gained a little strength and that there's some economic troubles on this side of the border that has precipitated the slide in our own currency.

Oil has stayed mostly steady, but commodity prices are in flux with some changes worthy of note.

While distillate prices have stayed relatively steady over the past week, for the last day I have on record showed gasoline numbers to be out of whack with what distillates are showing. An oddity I sometimes wonder about.

Here's an example:

While heating oils sold at $2.46.24 on Friday, they showed little change in Monday trading, remaining relatively steady at $2.47.32, a change of 1.08 cents a litre.

Gasoline was the difference that I noted though. Friday's trading session showed gasoline at $2.33.53 a US gallon, while Monday's market close showed an increase to $2.42.03 cents a US gallon, or an increase from Friday's 62.46 cents a litre Canadian to Monday's 65.08 cents a litre, an increase of 2.62 cents a litre from the Friday close.

The reason?

I haven't seen an explanation yet, but I'm dying to see the reasons why it's up. If it does stay up this way for the next week, we're bound to be in a cycle of another increase to gasoline prices. We are now, as it is, just not to the same degree that we would be if one were to be making plans for the return trip home from Christmas vacation.

Here's what I have for this regulation period so far:

• Heating and stove oils are up by 1.03 cents a litre.
• Diesel is up by 9/10ths, and...
• Gasoline shows an added 1.1 cents per litre.

I'll be back tomorrow night with the final numbers.

Regards,

George

Consumers to get a small break at the pumps
Distillates show little movement

Media release

Conception Bay South, NL, December 14, 2010- Consumers of gasoline will get a small break at the pumps this week when the Public Utilities Board adjusts prices this Thursday. That's according to George Murphy, group researcher with the Consumer Group for Fair Gas Prices.

"While oil has remained relatively steady in terms of price there is some question as to where inventories stand as to their correlation to prices. I believe that this retreat in prices is caused by investors belief that consumers have been left with little maneuvering room and high energy prices have started to take a bite out of consumers wallets. That seems to be supported by data from the US American Petroleum Institute (API) report which shows growth in gasoline inventory for the second week in a row. The real proof may come tomorrow when the US government's Energy Information Administration releases its inventory data. If that correlates with the API data, we may see some more retreat in pricing, as well as for oil prices", said Murphy.

What to expect with prices
"I expect no change in heating and stove oils, while diesel shows just a four tenths of a cent drop per litre. Gasoline is showing 2.2 cents a litre down for this week. While there is a build in gasoline inventory, heating and stove oils have been under considerable pressure from increased European demand as a result of cold weather there.

Consumers should question tire burning
"Consumers in this province have been charged three dollars per tire for the past few years to help institute a tire recycling program. I don't think they expect tires to be burned as fuel. It's a one time end use for something that consumers didn't want to see. Consumers expect value for their money, so tire burning doesn't endear anyone in the belief in tire recycling. We expect more bang for our three dollars a tire that we've paid. Why doesn't the government commission a study into other alternative uses for tires besides burning them? That hardly represents a recycling effort in my books. They could have used them as a aggregate in road asphalt as that material has become relatively costly in recent years. It just seems that burning tires doesn't seem to be healthy for the environment , while we recycle roads in recent years. Consumers need to know that they're getting "money for worth" when it comes to paying tire recycling fees."

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For more information, contact;

George Murphy
Group researcher/Member
Consumer Group for Fair Gas Prices

Gasoline numbers down

Distillates steady

Yes, I said gasoline numbers are down so far, for this weeks changes anyway.

Here's what I have so far, in a not too contentious business week:

• Heating and stove oils are down by a mere 3/100ths of a cent.
• Diesel is down by 3/10ths of a cent, and...
• Gasoline is down by 2.1 cents a litre.

Yes...

Cause for celebration maybe?

Not quite yet, but it is a welcome break from last weeks sudden rise and puts us in line with what has been happening in other markets with very modest price drops.

What I'm looking for this week

Of course, tomorrow will find me posting the full seven day synopsis on what to expect as regards to price changes for the week, but I'm also looking for signs of a drop in demand of products like gasoline just to see if price has anything correlating to last weeks build in gasoline inventory.

That news comes on Tuesday with an industry report on inventories followed on Wednesday by the US Energy Information Administrations take on inventory findings.

If so, then expect some further moderation in both distillates as well as gasoline, and that should be mirrored by a slight slide in oil prices. If demand has been affected by high prices it may be very likely an indicator that we're all dealing with very weak recovery in the economy, something for which there's much contentious debate.

For me, it's going to be another signal to Big Oil that consumers aren't going to tolerate high prices and it'll be another sign that there's very little room for maneuver by the consumer when it comes to disposable income.

You know where to find me...

Catch you all tomorrow night with the final breakdown on what to expect for Thursday.

Regards for now!

George

Numbers up for all fuels
Increased oil prices mean consumers will pay

Media release

Conception Bay South, NL, December 07, 2010- Consumers in Newfoundland and Labrador will be paying more for all fuels this coming Thursday. That's according to the information that George Murphy has gathered for the last week, and the numbers are substantial.

"We're looking at increases in pricing across the board", said Murphy. "Prices are reflective of what has been happening in the markets over the past week, and the consumer is going to pay as a result of an increase in refined commodities."

"I expect heating and stove oils to increase by 2.69 cents per litre, diesel shows an increase of 2.3 cents and gasoline is up by four cents on a litre for Thursday. There was some retreat in oil prices that was just not enough to bring those numbers the other way, but what I did see in the numbers for the past two days is reflective of what we might expect in the coming weeks: the possibility that European Union countries like Ireland and Portugal may not be able to meet their financial targets. That could lead to faltering economic recovery, ending in a retreat in oil prices altogether. We're keeping an eye to those countries to see if they meet their previous commitments to pay down their debt. Any austerity programming that these countries do bring in could potentially affect consumer spending and affect exports from countries like the United States and Canada, and that could mean economic troubles down the road. Either way, the markets and consumers are both reaching a breaking point: markets for how much they can earn the investor and consumers for how much they can bear high energy prices before they curtail spending."

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For more information, contact;

George Murphy
Group researcher/Member
Consumer Group for Fair Gas Prices
gasprices@hotmail.com please