Not much change in the numbers

Media release

Conception Bay South, NL, January 27, 2009- Consumers in the province will hardly notice the changes when the PUB moves to set prices this coming Thursday, but that’s not necessarily a bad thing.

“The numbers, with all the data in now, are nothing substantial and that’s not a bad thing. We’d like to see prices dropping and, although they’re not dropping substantially, gasoline will be dropping close to 1.1 cents a litre. After today’s market activity along with all the bad economic news, there will likely be a gradual slide further downwards in pricing over the next few days for all fuels.

“Heating and stove oils are predicted to see an added 8/10ths onto current prices but it’s not expected that the fuels will see another increase in the coming weeks. Even though we’re deep into the demand season for these types of fuels, they are being mitigated by the other fuel I the distillate group of fuels, diesel, that shows a slight drop of 7/10ths of a cent. With the worsening economic news and anticipated inventory builds, I expect to start to see future declines in all petroleum products in the next couple of weeks.

No budget breaks
“Consumers of fossil fuels, who have been the singular positive influence in any economic recovery, failed to see any substantive tax breaks that could have meant something to any economic recovery. The recent drop in fuel prices from year-ago levels has been the singular largest factor in giving consumers back some disposable income and we should have seen more tax relief to consumers as an emergency measure in today’s budget. We’re still subject to taxation on heat and major transport fuels and we’re still paying artificially high prices on consumer items as a result.

“We also didn’t hear anything as regards to government lifting the remaining fuel surcharge off Marine Atlantic rates. Again, we’re still seeing the remaining nine per cent fuel surcharge added to consumable goods into the province and that adds an artificial inflation rate onto goods and services into Newfoundland and Labrador. Marine Atlantic is our highway. Where is the infrastructure money for our ‘highway’ to Nova Scotia?

Inventories remain high
“Inventories of all fossil fuels remain high in spite of the news from some oil companies that they will begin to reduce refinement of products, particularly gasoline. Inventories climbed again last week for the eighth week in a row and another build in crude stocks along with refined product is expected for tomorrow. I fully expect that, if the inventory reports are positive tomorrow, that we’ll be in line to witness the markets come back to economic reality on oil and that we’ll witness further declines in oil pricing.”

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For more information, contact;

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