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September 12, 2007

Second oil dealer pulls out of LIHEAP

A second major oil company in the state has thrown in the towel on the Low Income Home Energy Assistance Program because of an increase in the discount participating companies must provide on oil sold under the program.

C.N. Brown, based in South Paris, decided the state-mandated discount of seven cents per gallon is too high and would cost the company $91,000, according to VillageSoup.com. C.N. Brown delivered 1.3 million gallons under the federal program last year, the news site says. The Maine State Housing Authority, which administers LIHEAP in Maine, increased the required discount from three cents to seven cents this year.

While C.N. Brown is the second major oil dealer in the state to pull out of the program -- Webber Energy Fuel recently pulled out, as well -- the Maine State Housing Authority says it is confident there will be enough participating companies to meet demand, the website says.

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