Increases coming to stove, heating and gasoline prices

Media release

Conception Bay South, NL, April 8, 2009- Consumers in Newfoundland and Labrador will experience another bump at the pumps when they wake on Thursday morning, that’s according to George Murphy of the Consumer Group for Fair Gas Prices.

What consumers will see
“There has been a lot of volatility in the markets over the past two weeks, especially with refined commodity prices. In spite of recent inventory gains for all fuel groups, prices have been up sharply one day and down the next. That overall trend is adding up to some increases in consumer pricing. Gasoline shows 2.1 cents a litre up, stove oils show 3.14 up and that could be pointing the way towards an increase in heating oil costs as well. It’s still too close to call for diesel, even though my numbers show anywhere between 2/10ths and 2.0 cents down on that fuel,” said Murphy.

Missing opportunity in Central Newfoundland?
“The closure of the Grand Falls-Winsor paper mill is reflective of lost opportunity to break into the green economy in the province. Methanol is fast taking a place as a viable energy product that is added to most fuels to help complete the burning process and can even be used by itself. It also happens to be made from fermenting wood fibre by-products. Abitibi-Bowater should be approached and partnered with the provincial and federal governments to convert the plant to, not only make paper but to refine methanol using its waste by-products that can’t be used in the papermaking process. We’re letting Central Newfoundland die on the vine and we should all be a little more forward in our thinking that we have a place and a role to play in today’s world changes to a green economy. The take-over and expropriation of the power resources belonging to Abitibi-Bowater may have complicated the chances of even approaching the company to try such a venture. Methanol could have been refined there and distributed world-wide through the petrochemical industry using Botwood as an export point; and these export points are also the import points for more conventional fuels around the province, like gasoline and heating oils. These points for transit already exist! And let’s not forget the fact that we have another paper making plant in Corner Brook that could also be on its last legs and in need of a secondary source of funds from wood fibre.

“It’s just not in central regions that a project such as this could have occurred. We have an untold number of wood harvesters and other forestry workers out there tied to an industry that failed to diversify from its sole intent; to make paper. We also have secondary industries that also are connected with the forestry sector, like the transport industry, that can benefit. Today, we can use wood and any other wood by-product, including the recycling of paper, into methanol. We also have a federal government ready to invest into greener energy technologies. The question does have to be asked however; ‘Is it too late to back up now?’

“Imagine if something like this worked, with minimal dollars to convert wood to a viable fuel. In Labrador, where there is a virtually untouched source of wood fibre, the methanol change could help bring about the demise of expensive oils used along the coast for electric generation. It can be a fuel manufactured in Labrador for the benefit of Labradorians. What we have here instead I believe, is a lost opportunity from both levels of government as well as Abitbi-Bowater, to help ensure the security of wood fibre as a source of driving an economy.”


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For more information, contact;

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