Gasoline tracks upwards again

Distillates drop

Media release

Conception Bay South, NL, March 27, 2012 – Consumers in Newfoundland and Labrador will see prices at the pumps increase again this week as the traditional build-up to the summer driving season sees investors signal the approach of warmer weather. That news comes from George Murphy, group researcher for the consumer group for Fair Gas Prices.

Nine cents off the record

“Gasoline prices on the New York Mercantile Exchange averaged close to 82.8 cents a litre last week, compared to this week’s 86.11 cents a litre. The difference here is coming to a pump near you,” Murphy said. “It means that consumers will pay close to 3.8 cents a litre more by Thursday morning, and this one hurts with prices for regular hitting $1.44 a litre for the regulated maximum price, if the numbers work out right.”

“Distillate prices are down this week, but barely, as the focus of investors has been seen to switch from the winter heating oil demand season to a focus by investors in transportation fuels. Heating and stove oils show a drop of 1.11 cents a litre, while diesel fuel is projected to drop by a mere 6/10ths, but even that gives you the scope of how much resistance there is to any downward movement in distillate prices. Investors are reluctant to show their hand. But with the coming of the end of winter in the US northeast, the writing was on the wall for winter heating oil prices, and hence, the drop in distillate prices.

“How high prices will go are going to depend on how demand for gasoline plays out in the next month leading up to the US Memorial Day weekend. Consumers are going to have to conserve and make their collective voices heard by making an impact on inventories. Right now, demand is about two percent higher than the same timeframe last year, so prices are moving up along with demand. Consumers will have to send a collective message unless the effects of high energy prices start telling on the economies of business first.”

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For more information, contact;

George Murphy

Group researcher

Consumer Group for Fair Gas Prices