Shane Sweet, New England Fuel Institute, (617) 924-1000

Gene Guilford, Independent Connecticut Petroleum Assn. (860) 613-2041

Kevin Rooney, Oil Heat Institute of Long Island (631) 360-0200

Jamie Py, Maine Oil Dealers Assn. (207) 729-5298

Michael Ferrante, Massachusetts Oilheat Council (781) 237-0730

Robert Garside, Oil Heat Council of New Hampshire (603) 895-3808

Eric DeGesero, Fuel Merchants Assn. of New Jersey (973) 464-9504

John Maniscalco , New York [City] Oil Heating Assn. (212) 695-1380

Julie Gill, Oil Heat Institute of Rhode Island , (401) 464-8000

Matt Cota, Vermont Fuel Dealers Assn. (802) 485-7999

Michael O’Connor, Virginia Petroleum Marketers and C-Store Assoc. (804-282-7534)

 Dealers Seek Energy Price Relief, Speculation Control

Facing Rampant Volatility in Energy Markets, Home Heating Oil Dealers Ask Feds to Extend Relief Beyond Wall Street to Main Street

March 20, 2008 (Boston, MA) – Home heating oil dealers are planning to appeal to federal policymakers to enact a five-point program of relief aimed at helping consumers cope with historically high energy prices by increasing supply and reining in profiteering in markets overrun by speculators.

“The futures market is broken and needs to be fixed,” Shane Sweet, the Chief Executive Officer and the Executive Vice President of the New England Fuel Institute, said. “It was originally created as a tool for the oil industry so that the market could set the price of energy commodities. Unfortunately, it has become extraordinarily dysfunctional because market fundamentals like supply and demand are no longer connected to the price points. Instead, speculators are driving prices, and American families and businesses are paying the cost.”

Specifically, Sweet called on federal officials to do five things:

• Release nearly 2 million gallons of oil from the Northeast Home Heating Oil Reserve.

• Halt shipments of crude oil to the National Strategic Petroleum Reserve.

• Fully find the Low-Income Home Energy Assistance Program (LIHEAP) for FY 2009.

• Pass HR 2419, the Farm Bill, which contains language that would help close the Enron Loophole and loopholes that allow foreign markets to operate in the United States unregulated by the federal government.

• Direct the Small Business Administration to work with the banking industry to increase the credit ceilings for home heating oil dealers whose ability to use credit to manage cash flow has been crippled by rising prices.

Releasing oil from the Northeast reserve, stopping shipments to the National Strategic Reserve and fully funding the LIHEAP program would work to increase supply in the market, Sweet said, theoretically helping to push prices down.

“In addition,” Sweet said, “removing the federal strategic reserve, which is at 95 percent capacity already, from the market would increase available supply at a tremendous saving for American taxpayers.”

Passing the Farm Bill would help put an end to speculation enabled by mechanisms like the Enron Loophole to drive energy prices to historic highs.

Raising loan limits would help home heating oil dealers who have to balance their ability to purchase product with their customers’ ability to pay in a timely fashion, Sweet said. Most dealers have to pay the fuel wholesaler within five days of receipt; customers often take as long as 30 days or more to pay for delivered fuel.

“These are five things that the federal government can do right now to help consumers and small businesses deal with the mess that the energy markets have become,” Sweet said. “There’s a lot more that needs to be done, but these five action items collectively represent a good first step.”

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ICPA represents more than 540 Connecticut based independent businesses. These businesses employ 13,000 Connecticut citizens and supply the majority of our state's 1,600 motor fuels outlets and 350 heating fuels dealers. ICPA's offices are at 10 Alcap Ridge, Cromwell, CT  06416.  For more information about today's Press Release, contact Gene Guilford or Chris Herb.