Spring brings no relief to NH's heating oil customers
CONCORD, N.H.—With the arrival of spring, thermostats are being turned down but prices keep going up for New Hampshire residents who use oil to heat their homes.
The average price for a gallon of oil in New Hampshire surpassed $4 for the first time ever last week. The number has been steadily rising for months and experts say it probably will continue to rise right into next winter. A year ago, the price was $2.51 a gallon.
The price increases have meant more unpaid bills for oil delivery companies, more requests for financial help from government aid programs and increased interest in alternative fuels.
"This is the worst we've seen," said Bill Fuller of Fred Fuller Oil Co. "You've got people calling and crying, and you feel bad and try to explain that it's not us. We're not the big guys, we're just the retailers."
Fuller said many customers are asking for smaller deliveries to keep their bills down. Some have requested as few as 20 gallons, but the company usually draws the line at about 100 gallons per delivery.
About 55 percent of New Hampshire households use oil heat, one of the highest percentages in the country. But the rising prices are a global phenomenon. Demand for oil in emerging markets overseas is rising sharply, and production isn't keeping page.
"The U.S. has always consumed a lot of energy, and now countries like India and China are playing catch-up and consuming more and more oil, and that puts everyone's price up," said Joe Broyles, energy program manger at the state Office of Energy and Planning.
As a result, the expectation that a drop in demand in the spring and summer would reduce the price of heating oil no longer holds true, retailers said.
"Years ago, it was predictable," said Fuller, whose father started the business 40 years ago. "But that's not the case now. The smallest thing happens here or overseas, and all of a sudden the market goes crazy."
A record number of New Hampshire households -- nearly 35,000 -- received help from the state to pay fuel bills this winter, said Celeste Lovett, manager of the state's fuel assistance program. The average benefit was $600, which doesn't cover as much as it did a few years ago, she said.
"I'm concerned that people may have outstanding balances with their fuel companies that this program can't address," she said.
Ricky Barnard, manager of Contoocook Valley Fuel Service, said he's seen a sharp inquires in the number of customers struggling to make payments.
"I've got a lot of open accounts on the books, a lot more than usual," he said.
Orrin Poland, owner of Vaillancourt Fuels in Hillsboro, said some of his most reliable customers are falling behind. He tries to work out a partial payment plan but insists on cash payments at delivery for those with a history of paying late.
"They think that you're the oil company and have all kinds of money, but our margin didn't increase with the price increase," he said. "I have to be more stringent this time of year."
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Information from: Concord Monitor, http://www.cmonitor.com
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