Federal Energy Administration's System for Monitoring Heating Oil Prices

EMD-77-63A: Published: Aug 25, 1977. Publicly Released: Aug 25, 1977.

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Under the monitoring system established by the Federal Energy Administration (FEA) to ensure that heating oil price levels remain reasonable, FEA collects price information from a survey of about 600 firms and compares the average of these survey prices to an index price which is the FEA best estimate of what average heating oil prices would have been had they remained under price controls.

Overall, the sampling plan is reasonable and fairly represents residential heating oil users. The design of FEA regional and national monitoring systems is sufficiently sensitive to increases in residential prices so that a similar monitoring system designed specifically for residential heating oil prices is not necessary. Survey and sampling errors are reasonably small, and sampling errors have been insignificant for the past heating season.

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    Department of Energy
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