Worcester Company Fined $450K Over Adulterated Heating Oil

WORCESTER, MA — A Worcester-based heating oil company will pay a $450,000 fine after it was accused of delivering faulty fuel products to the state, according to Attorney General Maura Healey.

Peterson Oil delivered heating oil that contained eight times the amount of biodiesel than what was allowed under the company's contract with the state. The bad fuel mix caused heating equipment to perform poorly, Healey said in a statement.

The company also falsely documented that it delivered the correct mix of heating oil. The violations fell under the state False Claims Act, Healey said.

"Cities and towns relied on Peterson Oil to deliver heating fuel in accordance with its contract so they could stay warm, but they instead received noncompliant fuel that caused problems for many heating systems," Healey said Wednesday.

The fine was entered in Suffolk Superior Court on Wednesday. If Peterson ever gets another state contract, it will be required to keep accurate records of the fuel it delivers.