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September 6, 2007

Oil dealers threaten LIHEAP pullout

Maine oil dealers are protesting an increase in the discounted rates they must provide when they participate in the Low Income Home Energy Assistance Program.

The Maine Oil Dealers Association says a four cent per gallon increase on the discounted cash price of all oil purchased by the more than 47,000 LIHEAP eligible households will cost oil companies in the state millions of dollars. MODA said the change would force dealers to either charge regular customers more for their oil, drop out of LIHEAP or take a financial blow, according to the Bangor Daily News. One of Bangor's largest oil dealers, Webber Energy Fuels, which recently laid off an undisclosed number of employees due to low sales, pulled out of LIHEAP last week, the paper said.

Maine oil dealers that participate in LIHEAP receive federal subsidies ˆ– a total of $27.7 million last year -- to put toward LIHEAP customers' oil purchases, the Daily News said.

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