MA Oil Wholesalers Allowed to Stockpile
September 30, 2000
BOSTON, MA — Massachusetts officials, seeking to avoid a heating oil crisis, are considering offering oil wholesalers a price guarantee to encourage them to build up heating fuel stockpiles, according to the Boston Globe. However, due to the recent fluctuation of fuel prices, wholesalers are hesitant to stockpile for fear they will lose money. Under the state’s plan, heating oil prices will not be lowered for consumers since wholesalers usually charge their customers the going rate at the time of the sale, not the price they paid for the oil, said the Boston Globe. The state’s plan would use some of its budget surplus to make up for any drop in prices if wholesalers buy specified amounts of heating oil soon and store them. In addition, while the plan is still in its formative stages, officials in Governor Paul Cellucci’s administration say they are optimistic that it will be implemented.
Publication date: 10/02/2000