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Fuel vendors warn same‑day price lag and statutory margins are forcing LIHEAP deliveries to stop

Human Services Committee · March 3, 2026

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Summary

Heating‑fuel vendors and advocates told the Human Services Committee that current LIHEAP vendor reimbursement rules and a lagging day‑of price mechanism make small retailers lose money and pause deliveries during extreme price volatility.

At the Human Services Committee hearing, energy vendors and trade associations urged lawmakers to reject HB 5355 as drafted, saying it would roll back protections previously enacted and leave small fuel dealers unable to deliver to LIHEAP recipients during volatile markets.

Chris Herb, president of the Connecticut Energy Marketers Association, told the committee vendors were being asked to deliver at prices set a day or more earlier while wholesale and retail prices have jumped multiple times a day. "On Friday, DSS published a price for vendors that was based on Thursday's price ... there was a 25¢ increase on Saturday ... a 40¢ increase on Monday," he said, describing instances where trucks were parked and deliveries delayed.

Vendors said the program's margin structure — a statutory margin over rack or large discounts off retail — plus a prohibition on surcharges leave small businesses exposed to sudden cost spikes. "We cannot go out at a loss," said Paula Ryan of Ryan Oil Company. DSS witnesses said they had worked with vendor groups and deployed oversight and payment interventions where necessary and that the statutory reform memorializes a typical approach the state has used; DSS also said it was examining emergency options when volatility spikes.

Committee members asked for immediate corrective action and technical follow‑up on whether LIHEAP vendor agreements and the LIHEAP plan allow short‑term adjustments to prevent delivery disruption. No formal committee action was taken during the hearing.