Attorney General Tom Corbett warned members of the Senate Consumer Affairs and Professional Licensure Committee this week that home heating oil and natural gas prices could replace current concerns about gasoline prices, all due to the impacts of the two hurricanes hitting the Gulf Coast.

Representatives of the petroleum industry echoed those same concerns.

The Associated Petroleum Industries of Pennsylvania reported 23 percent of the refining capacity, and 28 percent of crude oil production and 15 percent of the natural gas production of the United States is out of service along with a significant number of natural gas processing plants.

The Department of Energy already has projected natural gas and heating oil prices will increase 40 – 70 percent this winter, although experts say it is difficult to predict where prices will be.

The Pennsylvania Petroleum Marketers and Convenience Store Association said there were concerns about rising heating oil prices even before the hurricanes. The Association also said the New York Mercantile Exchange has a significant impact on heating oil and gasoline pricing as traders not connected to the industry buy and sell product for delivery in the future.

Another potential problem is the interrelated nature of some natural gas users and demand for heating oil. The Association said as natural gas supplies to businesses are interrupted, many switch to heating oil as a replacement fuel putting further demand on supplies.

Rising heating costs will also put more pressure on the LIHEAP low-income household heating assistance program which will be inadequate for this heating season, the Association said. They recommended an increase in funding for the program.

The Attorney General said his office has received 1,400 complaints about gasoline price gouging since Hurricane Katrina hit. His Office has issued 30 subpoenas, done over 600 spot checks at service stations and has joined a 43-state investigation of prices by Attorney Generals in other states.

The Public Utility Commission this week also re-launched its own “Prepare Now” campaign to educate the public about ways they can reduce energy costs.

NewsClips: Rendell Considers Boost in Heat Aid

Rendell Pushes More Federal LIHEAP Aid

Bleak Winter Outlook

Rendell – State Needs Other Energy Sources

What’s Up With Energy Costs?

PGW Seeks 29% Natural Gas Rate Boost

30% Natural Gas Hike Likely in Western PA

9/30/2005