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Energy
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counts now.”
Mr. Thomas said his wholesale suppliers have forecast tight supplies into January, but depending on the weather it could last longer; possibly through the month. He said that his company has been put on an allocation schedule, but so far that has not affected deliveries. “It’s cut down on our supply, but fortunately we had full storage tanks.”
In addition to the demand caused by record low temperatures, Mr. Thomas added, there were several accidents recently which contributed to the shortage of fuels. An explosion and fire at a storage facility in Louisiana last week cost the industry four million gallons of heating oil. And on Dec. 18, a pipeline broke in Orange County, spilling 18,000 gallons of kerosene and closing that supply line as well.
Customers, Mr. Thomas said, have not complained about the 40 percent increase in fuel prices. “I know it’s hurting us, but customers have been pretty understanding.” Asked about allegations of price gouging, Mr. Thomas said he sees no evidence of that. “It’s a combination of things working together which have put the heating oil market in quite a bind. We can’t seem to catch up.”
Richard Williamson, manager of Commonwealth Propane’s Front
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