For Immediate Release Contact: Beth Nagusky

June 8, 2004 287-4315

Maine Gasoline Prices Have Fallen Slightly Statewide Average Gasoline Prices

The current statewide average price for regular gasoline is $2.09 per gallon, which is two cents lower than last week. Pledges by Saudi Arabia and several other suppliers to significantly increase crude oil production have put downward pressure on crude oil prices, the biggest factor in gasoline prices. U.S. gasoline inventories increased by 1.3 million barrels between May 21 st and May 28 th . Gasoline imports average about 1 million barrels per day and domestic gasoline production is averaging 8.8 mbbl ./ day. There continues to be enough supply to not only meet demand, but to supplement inventories. Gasoline inventories typically increase in May, but they are still significantly below the five-year average. Higher inventories add flexibility to the system and help to relieve some price pressure.

As of June 8, 2004

Prices based on AAA Daily Fuel Gauge Report and www.mainegasprices.com (Northern Region)

Drivers Can Reduce Gasoline Costs

The best defense against high gasoline prices is to reduce gasoline consumption. Consumers can reduce consumption by 20% to 30% through a number of fairly simple steps: maintain properly inflated tires; obey the speed limit, keep your engine well-tuned and your oil changed; avoid sudden stops and starts, limit engine idling; remove excess weight from your vehicle; and combine errands to avoid the number of “cold starts.” For short trips, consider walking, biking or taking public transportation, if available. If you are in the market for a new vehicle, consider its fuel economy. Depending on the vehicle you drive, you could be paying as little as $.04 per mile or as much as $.20. In response to Governor Baldacci's initiatives, the State of Maine has reduced its annual travel expenses by over $1 million, and miles traveled by 18%, since fiscal year 2001.