Hank Investigates: Overcharged for Oil

And with winter just a month away, our investigation found that the millions of people who rely on home heating oil to keep warm are potential victims of price manipulation, meter tampering, and fraudulent deliveries.

Are you apprehensive about this home heating oil season?

Charles Carroll, Assistant Director, Mass. Division of Standards
"From all the indicators that we have, I'm very apprehensive about it."

State law says every year city or state officials must verify that every truck's meter is correctly calibrated, to make sure it delivers exactly as much fuel as it promises.

To keep the meters accurate, officials wire on unremovable lead seals. If the wires are snapped there's no way to know how much fuel is actually being delivered.

This one is sealed, but once the trucks leave the sealer, our investigation found, things can change quickly.

In on-the-road surprise inspections like this last winter records reveal some trucks had actually been operating unsealed for years. In fact, seals on one out every four trucks inspected were cut, broken or tampered with.

In other words, one out of every four deliveries the state checked was illegal.

So people may be paying for home heating oil that they are not getting?

Charles Carroll
"Yes."

There's more. You've seen the delivery tickets that are left for customers? By law those tickets must specify the exact price per gallon. Otherwise, the company could charge you whatever it wants when the actual bill arrives.

From what you know, why would an oil company leave the price blank?

Tom Hansbury
"Worst case scenario maybe they are hoping the price goes up this afternoon and they can make it higher than it was this morning."

In fact, we found records that show last year more than 1 in 10 tickets the state checked were improper, leaving customers paying mystery prices in a volatile market.

Tom Hansbury
"Say the price goes up 25 cents a gallon this afternoon."

The customer would never know?

Tom Hansbury
"The customer would never know."

Have you seen that happen?

Tom Hansbury
"It happened last winter."

And it's already happened this winter. Look at this ticket left recently at a Newton home. The price per gallon is completely blank.

So here, the customer is buying oil with no idea how much it costs?

Tom Hansbury
"Exactly."

What do you think?

Tom Hansbury
"It's wrong, it's illegal."

All in all, state records show dozens of oil companies caught in surprise state weights and measures inspections last year, and fined thousands of dollars for violations.

Now state officials are concerned about what they don't know.

Do you think you found every truck with a problem?

Charles Carroll
"Of course not."

That's because although state law requires delivery trucks be officially sealed, it does not require local officials to monitor deliveries.

When we checked local records, only a handful of communities report going on the road to inspect heating oil trucks.

So right now people in some towns are more protected than others?

Charles Carroll
"Positively."

Problem is, many weights and measures sealers, like Bruce Hall in Andover, are part time. They're the same people who must check scanners and scales and gas pumps. Question is: are local heating oil deliveries in compliance with the law?

Bruce Hall
"I wouldn't know at this point in time."

Because?

Bruce Hall
"Not having recent spot checks."

State officials say they have plenty of citation books, and intend to use them this winter. They'll also try to convince more communities to crack down. But officials know, right now, they're outnumbered.

So you can't possibly check everyone?

Tom Hansbury
"You can't. It can't be done."

So what do you know is out there?

Tom Hansbury
"We know there is a possibility a fraudulent practice could take place."

The heating oil industry acknowledges there are some problems with deliveries. And officials say they fear this winter those disreputable dealers may give all heating oil companies a bad name.

If you have a question or problem regarding a heating oil delivery, call the Massachusetts Division of Standards at (617) 727-3480.