By OGJ editors
HOUSTON, Feb. 7 -- Heat USA, a consumer group representing more than 30,000 heating oil users, has asked New York State Attorney General Elliot Spitzer to investigate this week's dramatic increase in the wholesale price of heating oil.
Since Feb. 3, the wholesale price of heating oil escalated by more than 20¢/gal, an increase last seen during the heating oil crisis in January 2000.
Tim Irving, Heat USA executive director, said there is no shortage of available heating oil supplies according to American Petroleum Institute figures.
"It looks to us as though there are a few large players in the market that are using the anxiety over Iraq to create an artificial shortage in the New York region. If a few big sellers are able to keep their oil from reaching the market, even for a few days, they can foster anxiety, and sell into that at a huge profit. If anyone asks questions, they figure they can blame it on the war," Irving said.
His organization asked Spitzer's office on Thursday to investigate the causes of the price increase and to examine extreme changes in the spread between New York Mercantile Exchange heating oil prices, and the cash price paid by New York state wholesalers.
Historically, the spread is only a few cents, Irving said. On Feb. 6, the spread was 20¢/gal and climbing.
As of Friday, Irving said he had not heard back yet from the attorney general's office but that he expected a response on Monday.
The Heat USA cooperative, which serves homeowners and small businesses in New York, New Jersey, Rhode Island, and Connecticut, advocates for oil consumers and provides members with low prices on heating oil and free service contracts. .
