Release #375-00

 

Contact:	Sunny Mindel / Lynn Rasic 212/788-2958
	John Radziejewski / Kevin Ortiz (DCA) 212/ 487-4283

DESPITE RELEASE OF OIL RESERVES, OIL PRICES AT 10-YEAR HIGH

Panel Will Hear Testimony from Government Officials, Analysts, Industry Experts and Citizen Groups

Responding to the rising costs of home heating oil throughout the Northeast, Mayor Rudolph W. Giuliani today convened hearings held by the Mayor's Task Force on Home Heating Oil. Hearings scheduled for Monday and Tuesday in the Public Hearing Chamber at City Hall will examine the continuing rise of home heating oil prices and determine what can be done to avert a potential energy crisis in New York City this winter. Senator Charles Schumer presented testimony and was followed by other government officials, analysts, industry experts, and citizen groups.

"Ten days after the announcement of the oil reserve release, oil prices continue to hover near ten-year highs, and supplies continue to be at their lowest levels in more than 20 years," Mayor Giuliani said. "The purpose of these home heating oil hearings is to help New Yorkers meet the challenge at hand, by developing methods to help residents minimize the cost of heating their homes this winter."

The Mayor introduced the members of the task force which include: Deputy Mayor for Community Services and Business Development Rudy Washington, Consumer Affairs Commissioner Jane S. Hoffman, Better
Business Bureau President Ronna Brown, Petroleum Industry Research Foundation Chairman John Lichtblau, Executive Vice President of the New York Heating Oil Association John Maniscalo, and NYPIRG Executive
Director Chris Meyer.

The members of the task force will serve on a panel during the hearings. The panel will hear testimony from government officials, oil market analysts, and distributors to better gauge what lies ahead for New Yorkers this winter. Landlord and various citizen groups will also testify to detail the effects high oil costs will have on New York City homeowners and renters.

"President Clinton ordered the release of 30 million barrels of oil from the Strategic Reserve over a week ago," Mayor Giuliani said. "While the release may temporarily curb further price increases, the price of crude oil remains at over $30 dollars a barrel. Despite the release of the oil reserves, New York City and the entire Northeast remain particularly vulnerable to heating oil shortages. When supplies drop and prices increase, New Yorkers may be forced to make difficult and unreasonable cuts in their budgets in order to pay their heating bills."

Last year the City paid more than $30 million dollars in excess energy costs. This year, if oil prices remain at their current level, the City can be expected to pay an additional $49 million dollars.

The Mayor and Consumer Affairs Commissioner Hoffman announced the formation of the task force on September 12th, after a survey conducted by the Department of Consumer Affairs revealed that prices for home heating oil continue to rise as supplies diminish.

New Yorkers seeking more information about home heating oil prices can contact the Department of Consumer Affairs at (212) 487-4444 or access the Department's website at nyc.gov/consumers. To obtain a copy of DCA's Home Heating Oil Price Survey, consumers can visit the Department's website or send a self-addressed, stamped envelope to:

Department of Consumer Affairs
Attention: Home Heating Oil Price Survey
42 Broadway, 8th Floor
New York, NY 10004

www.nyc.gov