Oil prices burden New Brunswickers

FREDERICTON, New Brunswick – The price of heating oil in New Brunswick has gone up 30 percent this year – twice the rate of gasoline.

The big jump has advocates for senior citizens and the poor warning that something must be done to prevent a crisis.

The Energy and Utilities Board says the maximum retail price of heating oil, including taxes, has gone from about $3.03 a gallon to $3.98 a gallon over the course of the year. By comparison, heating oil in Maine was averaging $3.20 a gallon last week.

Ralph Smith, president of the New Brunswick Seniors Federation, said the rising price is a big concern because about 50 percent of seniors heat their homes with oil. The federation met with government officials a few weeks ago to ask them to review the issue.

“It is a big concern,” said Smith. “Furnace oil is still used a great deal in the older homes.”

When the Liberals came to power in the province, they said they couldn’t afford to give a tax rebate on home heating to all New Brunswickers and confined it to $100 for low-income earners.

“There should be more help for low-income seniors than the $100 that is presently available,” said Smith.

Energy Minister Jack Keir acknowledged the increase in furnace oil prices.

But he said the hike was caused by the price of oil doubling from $50 a barrel to $100 a barrel this year. He noted the price fell last week.

“Home heating oil is exactly like gasoline,” said Keir. “It is based on the world market, and demand and supply.”

The energy minister said that’s why the Liberal government has worked hard to get the message out and fund programs to reduce energy consumption.

“As we’ve said for the last 12 months, the best way for people to save money on their energy bill is not to use that energy,” said Keir. “For low-income folks, we have programs in place.”

The Department of Family and Community Services has an emergency heating program that provides $270 to homeowners who qualify, he said. “There’s also a monthly low-income supplement for home heating.”

Dan Weston, coordinator for the Fredericton Anti-Poverty Organization, said the cost of heating a home is almost as much as a monthly mortgage payment.

“It’s atrocious,” he said. “You can’t continue to pass the buck on to the consumer, especially the low-income consumer, because they have no money.”

Weston said it costs hundreds of dollars to fill a home oil tank.

“Everything else has to go by the wayside. Christmas presents, rent, food,” he said. “Everybody is complaining about the price of fuel. More and more people can’t afford it.”