Won't Get Fueled Again: Fuel rigging scam could cause area disruptions
NEW YORK -- Federal investigators have accused the employees and owners of U.S.-based Mystic Tank Lines and T&S Trucking Corp. with rigging their trucks so they could steal and resell some $75 million worth of heating oil over the past 17 years. According to Reuters, Federal agents stormed the New York City offices of the companies that serve Maine to Maryland, seizing 34 vehicles and calling into question whether the firms will stay in business. And, according to industry experts, if the fleets have to close their doors, the entire area could face fuel delivery problems. "If this happened in January, I would be singing a different tune," said John Maniscalco, executive vice president of the New York Heating Oil Association. "If the two companies are totally out of operation there may be an impact." Asked if the more immediate potential impact could be on deliveries to gasoline stations if the firms closed, he said: "Correct. For heating oil there's still time ... Mystic has a tremendous gasoline division, they do a lot of business with the majors." Industry sources said retailers that rely heavily on Mystic or T&S ought to scramble now to find other carriers. The Northeast is the world's largest heating oil market and a major gasoline consuming hub and relies heavily on trucks to transport fuel. "It's not like there are a couple of hundred extra trucks out there waiting for someone to call up," one source told Reuters. With over 300 power units, Mystic is one of the Northeast and Mid-Atlantic's largest liquid bulk carriers, hauling heating oil, diesel, gasoline, kerosene, biodiesel, ethanol, jet fuel, lubricants, and cement. It has also won several supplier awards from customers all over the U.S. -- with files from Reuters