Consumer group predicts big jump in gas price

Colin MacLean
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Sean Russell, owner of Russell’s Land Design in Foxtrap, Conception Bay South, fills his business pickup truck and a gasoline container at the North Atlantic Petroleum Orange Store on the corner of Brookfield Road and Commonwealth Avenue in Mount Pearl Monday afternoon. George Murphy of the Consumers Group For Fair Gasoline Prices has predicted this Thursday could see gas go up by close to 11 cents a litre. — Photo by Joe Gibbons/The Telegram

The last time George Murphy saw indications like this in his gas price prediction formula, hurricane Katrina was about to hit the southern United States. That was in 2005.  

Murphy is predicting that unless something drastic changes today or Wednesday, gas will go up by almost 11 cents a litre Wednesday at midnight.

“I pray to God, hope my numbers are wrong on this one. If they are, fine and dandy. If they’re not, well then ... we could end up with a substantial increase,” he told The Telegram.

A longtime cabbie turned MHA, Murphy is also well known for being a spokesman for the Consumer Group for Fair Gas Prices. That group regularly predicts changes in the price of gas before they are officially announced.

Their latest numbers have Murphy worried. After all, the last time Newfoundland and Labrador had an increase of more than 10 cents a litre for gas, there was a deadly storm causing havoc in the Gulf of Mexico.

The reason for this huge increase is still caused by a storm, said Murphy, just not the kind you’d expect.

Buyers all crowded into the gasoline futures market at the same time last week. Murphy’s research points the cause at buyers over leveraging themselves and falling short on their predictions.

That caused a frenzy in the market and resulted in gas prices, by the gallon, swinging wildly in the U.S. late last week.

When you feed all those numbers into his formula, you get bad news for drivers in this province, said Murphy.

But he also offered a caveat of hope.

Anything can happen in two days, he said.

“We could end up having a miracle. But either way it looks like there is going to be some kind of an increase there on Thursday for consumers. It’s a bit sickening,” he said.

cmaclean@thetelegram.com

Twitter: @TelegramMacLean

Organizations: Consumer Group for Fair Gas Prices

Geographic location: United States, Newfoundland and Labrador, Gulf of Mexico

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Recent comments

  • J R
    October 03, 2012 - 10:46

    Yes the oil companies are gouging as usual. NL goverment is also gouging the consumer since about 1/3 of the gasoline cost is provincial taxes. About time the government gave a little back on the gasoline tax. Can someone explain to me why on average we in Clarenville are paying about 8 cents per litre more than St. John's.

  • NLFringe
    October 02, 2012 - 22:44

    Say what you like, dance & pull your hair out all you want. We keep buying it, they'll continue to make us pay dearly for it until we say, enough is enough.

  • Funny
    October 02, 2012 - 14:49

    Funny, I was in Florida for the last 2 weeks and it dropped 2 cents a gallon last week. This Guy is a joke! Time for the Government to fix this problem!!

    • Shawn
      October 02, 2012 - 14:58

      WRONG, gas has gone down on the market over 7% in the last month.........

  • Scott Free
    October 02, 2012 - 10:37

    Special thanks to our leaderless government who pander to the oil and gouge industry.

  • KLF
    October 02, 2012 - 10:17

    The reason for gas increase is because guess what is coming up...another long weekend! Gas always seems to increase right before a long weekend. If you have been watching the cost of crude lately it is always down or at a decent percent meaning no real reason why we should be getting such an increase in gas! It's ridicous and getting out of hand! Unfortunately we need the gas so we are going to buy it but it's not right!

  • BS Again
    October 02, 2012 - 09:34

    Pure gouging at the cost of the consumer yet again. Will be $1.50 a liter soon, and no relief in sight from our government, go figure? Better rush over to another U.S. owned company (Costco) a line up for gas!