There Will Be Oil for Winter, But at a Price, City Is Told

By LISA L. COLANGELO and FRANK LOMBARDI Daily News Staff Writers

he price of heating oil will remain volatile this winter, but consumers shouldn't fear being left with empty furnace tanks, oil experts told a mayoral task force yesterday.

"Prices will be high, but all customers' requirements will be met," said Paul Vermylen, speaking for the Independent Fuel Terminal Operators Association.

Michael Trunzo of the Empire State Petroleum Association, whose members market 70% of the heating oil in the state, said, "Energy customers must realize that they should not panic, as there are enough supplies to assure delivery to all oil heat consumers."

They were among a battery of oil merchants, experts and representatives of landlords and tenants who testified at the first of two days of hearings at City Hall.

A task force convened by Mayor Giuliani is holding the hearings to examine the causes of rising prices and what, if anything, the city can do about it.

Schools Chancellor Harold Levy and other city officials are to testify today about the impact on their agencies.

Giuliani estimated the city will spend $49 million more than last year if oil prices remain at their current level.

He said the average price for home heating oil in the city is $1.65 a gallon  49 cents more that it was last year at this time. The causes of the oil price hike are complex, witnesses said. One factor cited was the reduced production of crude oil and more unified posture of the Organization of Petroleum Exporting Countries. Another: the actions of some oil speculators whose tactics drive up prices so they can cash in on oil contracts they bought earlier at lower prices.

Possible cures and temporary remedies offered were equally problematic.

Among those testifying was Joseph Strasburg, president of the Rent Stabilization Association, which represents landlords of more than 1 million rent-controlled housing units in the city. He urged that the winter heating season be shortened by two months and the minimum temperatures landlords must maintain be reduced by 3 degrees during the day and at night.

Jerry O'Shea, director of the Brooklyn Tenants Council, who also testified, called Strasburg's proposal outrageous and said lowering already cold temperatures would be a further hardship for tenants.

http://www.nydailynews.com/2000-10-03/News_and_Views/City_Beat/a-82561.asp

-- Martin Thompson (mthom1927@aol.com), October 03, 2000