Official says dealer's group unhappy about oil prices, too

HARTFORD, Conn. (AP) Consumers aren't the only ones unhappy with a spike in home heating oil prices an official of the state's petroleum dealers group says they are feeling the pinch as well.

''There are probably thousands of complaints, most of them are my home heating dealers,'' Charles S. Isenberg, executive vice president of the Independent Connecticut Petroleum Association, said Friday. ''The 350 retail dealers I represent think these prices are an outrage.''

Attorney General Richard Blumenthal has said he is investigating allegations of price gouging.

Home heating oil prices have nearly tripled in recent weeks, and current prices in a survey conducted by the state Office of Policy and Management this week ranged from $1.69 per gallon to $1.89 per gallon. Those prices are an increase of as much as $1.01 over this time last year.

The OPM survey found a similar but slightly smaller increase in the cost of propane, which on Monday ranged from $1.14 per gallon to $1.92 per gallon.

''Prices have increased very dramatically, and the question is: Who is responsible?'' Blumenthal said. ''We're very definitely reviewing evidence of price gouging, unlawful surcharges, failures to provide notices of product shortages that were known in advance, possible antitrust collusion, and other violations of state law.''

Earlier this week, state environmental regulators permitted dealers to sell heating oil with a slightly higher sulfur content than ordinarily permitted under Connecticut clean-air laws.

During the past year, as the Organization of the Petroleum Exporting Countries has reduced production, prices of oil and gas have skyrocketed.

Last winter was warmer than normal, and heating oil prices remained stable and in some cases, dropped slightly during the season.

But winter which had largely treated Connecticut gently until January has returned with a vengeance, and as supplies have decreased oil prices have risen dramatically.

''Somebody picks up the phone they won't call Washington, Tulsa or Abu Dhabi, they call the local home heating oil dealer,'' said Isenberg.

''We have no connections with Big Oil whatsoever,'' he said.

Blumenthal said his office sent letters this week to wholesalers and retailers, asking about the prices at which they purchased the oil they have sold since October.

''We should be receiving responses today and early next week, and at that point we'll decide what direction to go with the investigation,'' he said Friday.

Isenberg, who said the 350 members of his association distribute 91 percent of the state's heating oil, said his members are having trouble paying for the oil themselves.

''I get an average of dealer calls every two or three minutes. They're outraged,'' he said.

Link:

http://courant.ctnow.com/news/apwire/Feb4-APwire_26560.stm

-- Carl Jenkins (Somewherepress@aol.com), February 04, 2000