Insulating
New Yorkers from High Home Heating Fuel Prices At this time last year, home heating oil prices spiked dramatically in the city, soaring from $1.31 per gallon to $2.28. For the 1.3 million New Yorkers who depend on oil to heat their homes and apartments, last winter was a cold and expensive one. And as this winter's heating season began, crude oil prices were at a 10-year high while home heating oil inventories were at a 24-year low. On average, the price of home heating oil is running 26 percent higher than last year's. The City's efforts on behalf of New Yorkers - and in particular, the efforts of the Department of Consumer Affairs - have gone a long way toward keeping families warm this winter. In the face of these price hikes, I asked Consumer Affairs Commissioner Jane Hoffman back in September to spearhead a Task Force to investigate what the City could do to protect New Yorkers. One of the Task Force's central recommendations - one that I strongly supported - was a 60-day suspension of the City's four percent tax on residential home heating oil. Although the tax is levied by the City, any suspension requires the
approval of the State Legislature. In December, I formally proposed
the tax suspension, and on February 5th, the State Senate approved the
measure, which also covered natural gas. We are currently working toward
reconciling this bill with a differing Assembly bill, at which time
New Yorkers can enjoy real relief from high heating costs. I am particularly concerned about the most vulnerable New Yorkers,
those living on low or fixed incomes. No one should have to choose between
food and warmth. That is why in December I sent a letter to hundreds
of thousands of New Yorkers describing the best ways to keep their home
heating bills down. Along with conservation and shopping tips, the letter
reminded New Yorkers about HEAP, the Home Energy Assistance Program.
HEAP provides cash assistance to low-income families in order to help
cover their heating costs, and the average benefit to City homeowners
is $350. Renters are eligible for a grant of between $40 and $50 as
well. Thanks in part to the informational letter, HEAP applications
are up by more than 50 percent in the city. The Department of Consumer Affairs is also stepping up its inspections
of home heating oil delivery trucks in order to protect New Yorkers
from "short-weighting," a practice through which consumers
receive less oil than they paid for. During the most recent sweep last
month, 12 of the 102 trucks inspected were found to be in violation
of City or State law, for an 88 percent compliance rate. In the last
year, Consumer Affairs performed 1,524 inspections. Last month, OPEC announced that it will again cut back on oil production,
signaling that this problem will not go away anytime soon. As we look
to next winter, we should not forget the recommendations provided by
the Home Heating Oil Task Force. By increasing federal spending on home
energy assistance, and by raising the state HEAP renters' grant back
to $95, the federal and state government could do a lot to help New
Yorkers weather the storm of sharply rising energy prices. For further information regarding home heating oil, contact the Department
of Consumer Affairs at (212) 487-4444, or visit their website at www.nyc.gov/consumers. |
