Galvin sees fuel crisis this winter

Secretary of State William F. Galvin yesterday warned that while gasoline prices may be on everyone's mind now, the real sticker shock will come this winter, with heating costs.

Galvin called for the creation of a state task force to develop a heating strategy and said state regulators should start making bulk purchases of heating oil and bar increases in the price of natural gas.

Industry officials criticized the proposals, calling them impractical.

Many energy analysts are forecasting that heating costs will rise dramatically this winter compared to last winter, at least 20 percent for heating oil and possibly 30 percent for natural gas. One group, the National Energy Assistance Directors' Association in Washington, projects heating oil customers will pay $1,541 over the coming winter, close to $280 more than last year.

''Some drivers may have some options when it comes to using their cars, but there are no options when it comes to keeping warm," Galvin said. ''You have to heat your house."

Galvin said the task force should include regulators, suppliers, and nonprofit organizations that work with low-income people.

''If people are going to do anything to plan for the winter, they need to do it now," he said.

Romney administration officials did not immediately respond to calls for comment.

Galvin also recommended a sales tax moratorium on products that would improve the heating efficiency of Massachusetts homes, including insulation, windows, and energy-efficient furnaces and boilers.

He called for a moratorium on natural gas price increases through the winter, ''to the extent possible," and suggested the state start buying heating oil in bulk, so the fuel could be sold at below-market prices to low-income consumers in winter.

Carmen Fields, a spokeswoman for Keyspan Energy Delivery, which supplies natural gas to most Boston-area homes, said a moratorium on natural gas price increases is not possible.

Fields said the company will file its winter rate request with state regulators in October, but any run-up in the price of natural gas after that will have to be passed on to customers. She said the price of natural gas has moved upward with the price of oil, which is beyond the company's control.

''We don't charge customers any more than we pay for it," Fields said.

The wholesale price of natural gas was $5.41 per 1,000 cubic feet a year ago but is now about $9.

Michael Ferrante, president of the Massachusetts Oil Heat Council, dismissed as ''a lot of hot air" Galvin's call for the state to get into the heating oil business.

''When are you going to buy the oil, and where are you going to store it?" he asked. ''The market won't change if Secretary Galvin steps in."

State pricing surveys indicate the average retail price of heating oil is currently $2.15 a gallon, up 34 percent from 12 months ago.

The state last year appropriated money to supplement federal fuel assistance programs, but no action has been taken on a similar bill for this winter.

Brian O'Connor, a spokesman for Citizens Energy, which provides heating oil at below-market prices to low-income consumers, said he expects federal funding for fuel assistance to be about the same as last year's, which would represent a decrease because of the run-up in energy prices.

''People involved in the heating business are very concerned," O'Connor said. ''Prices are very high, and we still have a month left of summer."

Bruce Mohl can be reached at mohl@globe.com.