Say good-bye to gas under a buck a litre
Numbers show interruption

Media release

Conception Bay South, NL, May 12, 2009- Consumers in Newfoundland and Labrador will experience a significant jump at the pumps when they wake up on Thursday morning, that’s according to George Murphy, group researcher with the Consumer Group for Fair Gas Prices.

“Numbers show that interruption on gasoline prices will occur as a result of elevated spot prices over the last seven days, and since prices were last set by the PUB. The guidelines have been met for prices to move up, in this case by a whopping 7.1 cents a litre according to my data. My numbers do not show other fuels increasing under the rules of interruption even though they are all mostly up as well.” said Murphy.

“The last price setting showed a difference of almost 1.7 cents a litre between my data and that of the PUB. It’s probable that difference could account for prices to increase by only 5.4 cents a litre, still extreme in its outcome to consumers. While the PUB takes a measure of volatility as well, my numbers didn’t start to show that until last Wednesday, a day after the last price setting. They’ve been sky-rocketing ever since.

“Call it the usual in this case. I’m hearing the usual causes of improving economic news, an anticipated pick-up in consumer demand ahead of the summer driving season in the US, or low refinery utilization rates, it’s all there to be heard. The simple fact is that consumers enjoyed a break at the pumps and that has helped put disposable income back into consumers’ pockets. In recent weeks, we’re seeing that being taken away again. Cheap energy helps in a recovering economy. On a local level, this one hurts.”

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For more information, contact;

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