MASSACHUSETTS BULK FUEL DISCOUNT

• Since the winter of 1991, Massachusetts has had a statewide "Margin Over Rack" (MOR) program which pays oil dealers the lesser of either a set margin of 25 cents per gallon or their regular retail price on the date of delivery. The Margin Over Rack concept is based on the fact that oil vendors base their per gallon retail price on a margin added to their terminal or "rack" price. Each vendor's margin is different due to variances in operating costs associated with delivery of the product. The MOR program allows all oil vendors to participate.

  For over a decade, a competitive bid oil program has operated in the Haverhill area, wherein companies bid for an acceptable profit margin above their wholesale oil price. It saves LIHEAP households from 10 to 20 cents per gallon.

LEVERAGING

2001: $4.8 million
2000: $2.3 million
1999: $2 million
1998: $1.5 million
1997: $1.6 million
1996: $1.7 million
1995: $1.8 million
1994: $2.4 million
1993: $1.7 million
1992: $2.3 million
1991: $1.4 million