The P.E.I. Petroleum Marketers Association cautions Islanders against switching from heating oil to propane because of impressions they’ll save thousands of dollars.
Mike Hennessey, president of the association, says it costs almost as much to heat the average home on P.E.I. with propane as it does with traditional heating oil.
Hennessey points out, as well, that the association represents companies that sell both products.
A story in The Guardian last month quoted Superior Propane as saying Islanders could save money if they converted to propane.
“You get 30 per cent more heating value out of a litre of oil than you do out of a litre of propane. That was never communicated in the article,’’ Hennessey said in an interview with The Guardian that included the association’s executive director, Walt MacDonald, and Charles Duffy, general manager of Kenmac Energy.
Based on prices set by the Island Regulatory and Appeals Commission, the cost of a litre of heating oil right now is $1.03 while the cost of a litre of propane is 69 cents. The average home on P.E.I. burns 2,500 litres of heating oil annually while that same home burns 3,432.89 litres of propane.
Add it all up and the annual cost of burning oil on P.E.I., in an average home, is $2,711.63, while it adds up to $2,727.70 for propane.
Duffy says heating oil appliances operate now 30 per cent more efficient than they did 35 to 40 years ago and Islanders are burning less.
“We’ve reduced the consumption of home owners again over the last 10 years by up to 25 to 30 per cent,’’ Duffy said.
The marketers association says Superior’s claim that switching to propane could save Islanders $1,300 annually along with a five cent per litre discount on a residential introductory offer and annual fuel savings is misleading.
“You can get (the numbers) to add up to that if you really diminish what we’ve done in the oil industry and put it back to 1970s numbers,’’ Duffy said. “We sell propane and oil. We want to make sure that we don’t have our oil customers coming in wondering ‘What are you doing to us here?’’’
Mike Thorne, general manager of Superior Propane’s Atlantic branch, told The Guardian in November that propane is considered by the Environmental Protection agency to be more environmentally friendly due to its lower carbon dioxide output. He added that it could also save homeowners as much as $1,300 annually along with a five cent per litre discount on a residential introductory offer and annual fuel savings. By offering zero per cent financing, propane is a cost-efficient alternative, Thorne said.
“We make it affordable for any homeowner to switch,’’ Thorne said.
Hennessey said converting from oil to propane will cost in the range of $8,000.
Duffy said the conversion will cost homeowners $1,200 a year for the first five and the savings might amount to $300.
“We don’t want to see a rush of people (moving) off oil onto propane for potential savings that aren’t there. We want to get people out of that thought process.’’
Hennessey said the heating oil industry probably represents 70 per cent of the homes on P.E.I.
Hennessey said progress is also being made in the number of oil spills in the province.
“According to the Department of Environment, we’re leading the nation with P.E.I. petroleum storage tank regulations and they are the envy of the country,’’ Hennessey said.
Figures from the department indicate from 2010 to 2011 spills were down 28 per cent.
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