This is from today's on-line Boston Herald. ---------------------------------------------------------------------- FAIR USE: Education and Discussion Purposes Only!

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Buyers fuming as oil prices rocket by J.M. Lawrence Tuesday, February 8, 2000

Home heating oil prices hit a record $2.04 per gallon yesterday in a ``murderous'' market spike that has angry consumers begging for relief and the state's poor shivering in cold homes.

``It's greed, pure greed,'' said Robert M. Coard, president/CEO of Action for Boston Community Development where desperate callers yesterday clamored for fuel assistance programs that are running dry.

For four weeks now home heating oil prices have skyrocketed in the Northeast with no end in site and lots of fingerpointing over what's causing the winter crisis.

Oil prices ranged from $1.70 per gallon to a whopping $$2.20, according to a state survey. The average price of $2.04 is more than double the cost of a gallon back in November.

``We've seen the worst combination of bad weather and low inventories we're likely to see,'' said Energy Commissioner David O'Connor.

The need among low-income consumers has become so dire that state Senate leaders today will vote on legislation to provide $10 million in fuel assistance to 20,000 to 25,000 households. The money would be the first such aid from the state since 1990.

``Heating one's home should not be a concern for any resident of our state, especially in a time of budget surpluses,'' said Senate Ways and Means Chairman Mark Montigny (D-New Bedford).

Gov. Paul Cellucci is expected to support the funds, sources said.

Fuel assistance programs across the state have already exhausted an additional $10 million in federal help released less than two weeks ago to help the poor.

Oil retailers continued to deny any price gouging and blamed a complex set of forces including OPEC, a prolonged cold snap and refineries who were lulled by warmer winters into producing less supplies.

``We were hoping the price would come down sooner, and we're all searching for answers,'' said Mike Ferrante, spokesman for the Massachusetts Oil Heat Council.

Responding to a request from Sen. John F. Kerry, U.S. Secretary of Energy Bill Richardson yesterday announced that he will hold an oil summit on Feb. 16 at Boston's Faneuil Hall to investigate the current market spike.

Richardson, along with Richard Sedano, chair of the National Association of State Energy Officials, will cohost the session where oil suppliers, refiners and distributors are expected to speak.

``I hope this meeting will help us get to the bottom of this unprecedented and unconscionable heating oil price increase,'' said Kerry.

Consumers yesterday vowed to rebel.

``This summer, we're changing to gas,'' said Lisa Raines, who says her heating bill for her three-family home in Dorchester has doubled this year. ``Enough is enough.''

One customer of Hughes Oil in West Roxbury took a $400 delivery of fuel and sent the company back an angry note refusing to pay more than $200.

``It's not a pleasant thing,'' said Richard Horan of Hughes Oil who said he's been working seven days a week since the crisis began a month ago.

Oil retailers aren't getting rich off the market, he said. ``We're just hoping to break even and I'd be glad to show anyone our numbers.''

His company for one is taking a bath on contracts negotiated with five municipalities last summer. Hughes is selling to them at a 90-cent loss per gallon.

Horan, who started in the retail oil business in the 1950s, said Wall Street speculators deserve part of the blame for the current price spiral.

``We have the commitment and the responsibility and the traders down in New York might have a heck of great time making 20 cents on a barrel and then all go down to (a bar) and order up some pints,'' he said. ``They don't see the customer. They don't hear from a single mother with a crying infant in her lap.''

Faced with triple the normal rate of calls for its one-time fuel delivery at 40 cents per gallon, nonprofit Citizen's Energy stopped taking applications last week.

Low-income seniors are resorting to running their ovens to heat their homes and relying on dangerous space heaters, said Kathy Mitchell of Community Action in Somerville.

Brockton homeowner Helen Falvey, who spent nearly $400 filling her oil tank two weeks ago, is keeping her thermostat at a cool 62 degrees. ``It's ridiculous,'' she said.

Coard urged state legislators and the governor to approve the added assistance.

``We still have the rest of February to go and you wonder why this is happening,'' he said. ``It's murderous and there's no good reason for it.''

The Clinton administration is trying to decide whether to dip into the nation's Strategic Petroleum Reserve a second time to increase market supplies and help drive down prices.

Key to that decision could be whether Richardson is able to persuade major oil producers to back off a 2-year-old production cutback up for discussion when OPEC meets in March.

Motorists also are feeling a pinch that will get worse, the government said yesterday. Gas prices are headed for a record $1.40 per gallon this spring.

Cosmo Macero Jr. contributed to this <<<

-- Irving (irvingf@myremarq.com), February 08, 2000

Answers

Y'know, if it WERE pure greed, hangin would be too quick a death. UNfortunately, I suspect that it isn't a greed situation. I would LOVE to see IR pix of the storage tanks this weekend. I'm afraid that they would be empty.....

Chuck

-- Chuck, a night driver (rienzoo@en.com), February 08, 2000.

If someone could tell me where to locate an IR camera, I'll go down tommorow night for a lil "sneak n' peek". The new town I just moved to has some major oil storage depots down on the waterfront. (I'm now about 10 miles outside of downtown Boston) Ahhh. the good old days...sneaking and peeking and shooting and looting... Hook me with the intel Chuck and I'll do the work.

-- Billy Boy (Rakkasan101st@Aol.com), February 08, 2000.

Any other Bostonians want to meet at Faneuil Hall on the 16th? Should be interesting!

-- Brooks (brooksbie@hotmail.com), February 08, 2000.