New Tax on Oil Imports May Increase University Fuel Costs by $1 Million

The University may face an added $1 million steam heating bill increase because of President Ford's proposed tax on imported oil, a Buildings and Grounds spokesman said yesterday.

Leslie E. Thomas, B & G utilities manager, said the $3-per-barrel tax could increase the total heating costs by as much as 20 per cent.

Robert E. Kaufmann, assistant dean of the Faculty for financial affairs, said yesterday he has not been able to estimate how much the Faculty would have to pay because of the increase.

May Pay Half

But he said that the Faculty would probably have to absorb 40 to 50 per cent of the increase.

"With all the variations that have been given about how much the increase will cost consumers, I haven't been able to figure out what it will cost me as a homeowner yet," Kaufmann said. "But if Mr. Thomas has come up with a number it must have some validity."

Thomas said yesterday that the recent warm weather "has helped considerably" in keeping steam heating costs at a minimum so far this winter.

Last October Thomas said the Faculty may face an unbudgeted $1 million increase in heating costs because of "the constant inflationary spiral" of the price of fuel.

B & G had originally prepared a budget of $2 million but the oil price used to determine the budget has jumped substantially since the original estimate was made.

The Massachusetts consumer affairs secretary said yesterday that Ford's proposed oil tax will have a "tremendous impact" on all electric bills in Massachusetts.

Lola Dickerson said the impact tax would be felt hardest in New England because the area electric companies use residual, or imported, oil for electricity.

"We have no short-range way of changing this dependency on residual oil," Dickerson said.