News Release

Price Volatility in World Oil Markets Puts Heating Oil Customers at Risk

PHILADELPHIA– October 1 marks the traditional start of the home heating season and the Energy Cooperative Association of Pennsylvania is warning that instability in the oil market could result in higher than average home heating oil prices this winter. In the last two and a half weeks, the wholesale price for home heating oil at the port of Philadelphia fluctuated by over $0.44/gallon. The Energy Cooperative announced today that its home heating oil program can protect homeowners from unjustified price spikes.

Since 1979, the Energy Cooperative has provided reliable and affordable full-service home heating oil to hundreds of Philadelphia-area households and organizations. The Energy Cooperative partners with full-service heating oil suppliers throughout southeastern Pennsylvania. Energy Cooperative suppliers agree to charge a fixed margin above the average daily wholesale price of oil. When the wholesale price drops, the price to co-op members drops. “Oil prices typically go up in mid-winter, forcing oil dealers to raise the price to consumers,” said Nadia Adawi, Director of Operations. “The problem is that as wholesale prices come down, many oil dealers do not lower their prices to consumers. The Energy Cooperative protects members by monitoring oil prices and verifying supplier delivery records to assure that the savings flow to our members.” Daily oil prices are posted on the Cooperative’s web site at www.theenergyco-op.com. Members can view the day’s prices for each supplier that serves a given zip code, can view past prices to assess trends, and can follow links to learn more about the outlook for energy prices this winter.

Energy Cooperative members typically save 10% -20% per year when compared to other full-service suppliers. In a survey of full-service oil suppliers last January, the average price charged by full-service oil dealers in the Philadelphia area was $1.46 per gallon. The price to Energy Cooperative members at the time was $1.30 per gallon. According to Adawi, “A typical home in the Philadelphia area used 800 gallons of oil last winter. With this kind of savings, members can save over $128 compared to their neighbors. When people realize how easy it is to save money on heating oil, they become smarter shoppers.”

379,571, or 29%, of homeowners in the Philadelphia region heat their homes with heating oil, according to the 1990 census. 46% of Bucks County households, and 50% of Chester County households rely on heating oil to keep their homes warm. “The vast majority of these people are spending more for oil than they need to,” said Adawi. “Many consumers think that they have to choose between low prices and full-service. By combining their buying power with thousands of other co-op members, they can have the best of both worlds - premium service without premium prices.” Energy Cooperative members can choose from a variety of payment and delivery options including budget plans, billing plans, and credit card payment. Members receive additional discounts on bulk and C.O.D. purchases. Some suppliers offer Co-op members discounts on service contracts.

The Energy Cooperative is a non-profit member-owned cooperative based in center city Philadelphia. For more than 22 years the Energy Cooperative has proven that there’s strength in numbers by saving over 6,500 consumers and small businesses money on their home heating oil and electricity.. The Co-op’s mission is to provide energy cost savings, education and advocacy on behalf of its members, particularly its low-income, elderly and disabled members, to promote the efficient use of energy and the use of renewable energy, and to support cooperative concepts and participate in the cooperative movement. Membership in the co-op costs $5 a year, but the membership fee is waived for members who have a low income, have a disability, or are 65 or older.

For more information call The Energy Cooperative,

(215) 413-2122 or e-mail at ecapstaff@theenergy.coop.