Archives of the Mayor's Press Office

FOR IMMEDIATE RELEASE
Date: Sunday, December 17, 2000

Release #472-00

 
Contact: Sunny Mindel / Michael Anton (212) 788-2958
  John Radziejewski (Consumer Affairs) (212) 487-4283

MAYOR GIULIANI AND CONSUMER AFFAIRS COMMISSIONER HOFFMAN
RELEASE HOME HEATING OIL TASK FORCE RECOMMENDATIONS

Suspension of 4% City Tax on Home Heating Oil and Increase in Federal Aid
to Low-Income Residents Are Among Recommendations

Mayor Rudolph W. Giuliani, together with Department of Consumer Affairs (DCA) Commissioner Jane S. Hoffman, today released recommendations from the Mayor's Task Force on Home Heating Oil on how to cope with soaring home heating oil prices. The recommendations are part of a comprehensive, 67-page report that also explains the home heating oil market and details the origins of the current crisis.

"With cold weather now upon us, these recommendations are meant to help New Yorkers minimize the cost of heating their homes this winter despite rising oil prices," Mayor Giuliani said. "A combination of OPEC action and Federal inaction has brought us to the point where New Yorkers stand to pay $190 or more above last year's prices to heat their homes with oil. As of December 11th, home heating oil prices were up 37 percent from last year. Since heating oil inventories are down by 43 percent on the East Coast compared to last year, those high prices could rise even higher."

"As the Task Force report shows, the Clinton Administration's decisions to release oil from the Strategic Petroleum Reserve and create the Northeast Heating Oil Reserve have had little impact. With the size of the current Northeast reserve, New York would only get about as much oil as we consume in 32 hours on a 15-degree day," the Mayor continued.

"Steep price hikes will hit New Yorkers hard, particularly those with low or fixed incomes," Commissioner Hoffman said. "Landlords, utilities, and even oil distributors will feel the pressure of high oil prices as well. The City is ready to do everything it can to make help consumers weather the winter. We are already in the process of sending out letters to hundreds of thousands of New York City homeowners, building managers, and low-income families detailing what they can do to make sure that heating oil does not burn their budgets."

Recommendations

The Task Force Report recommends the following:


Consumer Recommendations

The report also details recommendations for residents and businesses on how to cope with rising prices this winter, which include:

The Home Heating Oil Task Force

Created by the Mayor on September 12, 2000, the Task Force compiled the report based on its examination of the continuing rise of home heating oil prices and its impact on New York City renters, homeowners, businesses and government. Chaired by Commissioner Hoffman, the Task Force included Rudy Washington, Deputy Mayor for Business Services and Community Development; Ronna Brown, President, Better Business Bureau of Metropolitan New York; John Lichtblau, Chairman, Petroleum Industry Research Foundation; John Maniscalco, Executive Vice-President, New York Oil Heating Association; and Chris Meyer, Executive Director, New York Public Interest Research Group.

Home Heating Oil Hearings

On October 2nd and 3rd, 2000, the Task Force held hearings to determine how best to protect New Yorkers from the impending price increases. The report was written based on those hearings and on the Task Force's own research. During the two days of hearings, 25 witnesses addressed the Task Force on topics ranging from oil distribution to federal low-income heating aid to alternative fuel sources. Among the witnesses were: Senator Charles Schumer, Schools Chancellor Harold Levy, KeySpan Vice President David Manning, Mercantile Exchange President Neal Wolkoff, and oil analyst John Kilduff, as well as other government officials, market analysts, oil industry representatives, oil suppliers, end users, HEAP recipients, and citizen groups.

For further information regarding Home Heating Oil, contact the Department of Consumer Affairs at (212) 487-4444 or visit the DCA website at www.nyc.gov/consumers.

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