The local oil heating industry is struggling to stay alive in a business climate set to ruin independent oil delivery companies as well as making it nearly impossible for consumers to pay to heat their homes with oil.
The rampant commodities market speculation for oil has pushed a barrel of oil to nearly $100 and because of this, the price for a gallon of heating oil is near to $4.00.
This translates into $800, give or take $25 or $30 for single tank of oil.
Most Lynn homeowners and home heating oil consumers cannot afford to lay out $800 a month during the winter months for home heating oil. Even laying out half that amount, is a near impossibility for middle-class people.
Local oil companies will not deliver unless the money is there for the truck driver. If you are on a plan, the plan is almost worthless as a money saver as the cost for oil has gone so high and so much money must be laid out for a delivery to be made steadily.
As a result, consumers using home heating oil are calling for smaller amounts to be delivered which causes the local oil company to make more deliveries. In addition, there are no favors being given to consumers from local oil heating firms.
In fact, one firm we know well charges an extra $25 for a delivery of 50 gallons while most oil heating firms in Lynn will only deliver 100 gallons, which, at today’s outrageous price, will cost the consumer nearly $400.
Because of this, there has been a rush – actually a stampede by consumers – to switch to natural gas.
Thousands of former oil heat consumers are now using natural gas at an enormous savings. The energy equivalent of a $4.00 gallon of heating oil is a $1.75 amount of natural gas. Best of all, even though you have to pay for gas the same way you have to pay for oil, the gas won’t be shut off if you don’t have a check in your hand when Christmas Day is arriving.
Try getting an oil delivery during Christmas week if you have no fuel and its 25 degrees outside.
The gas company is offering incentives for oil heat users to convert and they are converting by the tens of thousands.
With no interest whatsoever in defending their own industry let alone helping out consumers being bludgeoned by rampant speculation this means your local oil heating company is on the ropes and heading out of business.
We wonder where our voice in government is on this matter. This isn’t just a matter for the poor unable to afford home heating oil. The middle and upper middle class can’t afford it either.
Where are our representatives on this one?
Is there a word forthcoming from Steve Walsh, Bob Fennell, Tom McGee, Congressman Tierney – the whole lot of them?
In the past 60 years, there has never been a month or even a day when there wasn’t enough oil to fill everyone’s tank. Demand has never outstripped the ability to supply. Wht then is there a rip-off price for heating oil being charged all of us?
Oil has become a scam and we are being scammed and frankly, no one in a position of responsibility seems to care – not even our local home heating oil companies.
1 comment for “Local Oil Industry in Big Trouble”