Oct. 22, 2008

County Executive Andy Spano today asked heating oil companies in Westchester to work with their customers to renegotiate fixed-price contracts now that the cost of home heating oil has dropped dramatically.

A survey of home heating oil prices released by the county’s Department of Consumer Protection just today shows the average price has dropped to $2.78 per gallon. That's down 46.3 cents per gallon from the last survey on October 6, and down $1.689 per gallon from the peak in mid-July.  

“Some customers, particularly seniors who were worried that there was no end in sight to the cost of oil,  locked in rates over the summer when they were at their peak – about $4.50 a gallon,’’ said Spano. “These consumers are now locked into sky high prices, even though much lower-priced heating oil is available.’’

 In a letter to 69 home heating oil companies that do business in Westchester, Spano is asking them to be sensitive to customers in this situation. Spano said that while he understands that many oil companies are in the same boat since they purchased the oil at those higher prices, companies may have some leeway in pricing and should consider assisting customers, particularly those on fixed incomes. 

“We urge the companies to work with these customers and agree to terms that are more affordable, and will enable both the customers and the oil companies to make it through these tough times,’’ Spano said.

Spano added that consumers should approach their companies to try to work out a deal. Companies may be willing to either reduce the fixed price or allow the customer to switch from a fixed-price contract to one with a price cap or variable rate. They may also agree to reduce the cancellation fee that is customarily charged to customers who cancel a fixed-rate contract.  But Spano said even if the fee is not waived, consumers might still save hundreds in oil costs if they cancel and renegotiate at the now lower rate.