Numbers show prices increasing
Prices well ahead of last year
News release

St. John’s, NL, October 23, 2007 – Increases in heating, stove oils as well as gasoline are to be expected in the coming days but, although the numbers in the increases are small, they are hiding an underlying truth; That consumers are continuing to be hurt by increasing prices.

“For twelve days out of a possible fourteen days, heating and stove oils are showing an increase of 9/10ths of a cent while gasoline is showing an increase of 1.2 cents a litre,” that’s according to George Murphy, group researcher and member of the Consumer Group for Fair Gas Prices. “It’s not a huge increase but it still is indicative of the prediction last week that we’ve hit the low point in spots and that prices would be moving up to the consumer.

“The numbers for this year are well ahead of last year. Heating and stove oil spot prices are now 12 cents a litre higher for the same time period while gasoline spots are that same 12 cents higher. The basic cost of heating and stove oils would now be unaffordable for lower income earners if it weren’t for one fact; the performance of the Canadian dollar. Consumers would be paying upwards of another 11 cents a litre more than what they are seeing now if the dollar had to hold the same value as last year. Any slide in the dollar now could cost the consumer this winter.

“The international situation remains volatile. If Turkey invades the Kurdish territories in Northern Iraq, we could see a disruption in crude supply. A lot of that comes to the US eastern seaboard, Eastern Canada and Europe. While there might be an ample supply right now, the promise of violence in a chief export area of Turkey may possibly turn into a worldwide supply disruption and that means rising pricing of all petroleum products. We still caution the consumer to fill the heating oil tanks in case we run into the world situation in the coming days.

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For more information, contact;

George Murphy
Group researcher/Member

gasprices@hotmail.com

Consider filling the home heating tank
International events warrant consumer warning

News release

St. John’s, Newfoundland, October 15, 2007 – International events are prompting a warning from the Consumer Group for Fair Gas Prices to fill the home heating oil tanks. George Murphy is sounding the alarm as ongoing violence is putting upwards pressure on pricing of all petroleum products.

“The last few days on the international scene is telling me that we have bottomed out on any further decreases in pricing of heating and stove oil product. Draws on inventory in the United States along with the threats of more violence in Turkey and northern Iraq have led to an increase in all distillate products over the last couple of business days. That news is grim as renewed violence in northern Iraq along the Turkish border could possibly disrupt oil exports to the coast of Turkey”, said Murphy.

“The port of Ceyhan, Turkey handles most Iraq exports that come from the north of Iraq. The Mediterranean town handles almost 1.6 million barrels in exports in a day to North America and Europe and, if that is disrupted because of any possible outbreak of violence in Northern Turkey and Iraq, then we may see a huge increase in oil pricing. That momentum is continuing on the markets today. If all-out war breaks out between Turkey and the Kurds of Northern Iraq, it may be a case of “force majeure” in the markets.

“While prices are not showing an increase at this time, the rise in spot pricing is noticeable today and any further increase in spots in the next few days because of further violence or draws on inventory, may possibly signal increases at the next adjustment period. That and the onset of colder weather will mean we have already bottomed out in pricing and we’re looking at an upswing and rise from here on.”

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For more information, contact;

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