For Immediate Release Contact: Beth Nagusky

August 2, 2004 287-4315

Maine Gasoline Prices Still High

In the southern areas of Maine surveyed by AAA, the current statewide average price for regular gasoline is $1.90 per gallon, the same as the national average retail price. This represents a two cent decrease in Maine 's statewide average since mid-July. Limited price information available for northern Maine indicates that prices for regular gasoline are higher there, in the $2.00 per gallon range. Diesel fuel prices have been increasing from a statewide average of $1.81 in mid-July to the current average of $1.86 per gallon.

Record volumes of crude oil imports have arrived on U.S. shores in recent weeks primarily as a result of large increases in oil imports from Nigeria and high levels of imports from Canada and Mexico . Crude oil imports to the East Coast were also at record levels at the end of July. While the East Coast has limited refinery capacity (concentrated in Virginia, Pennsylvania and New Jersey) it is a frequent recipient of Nigerian product. Spot gasoline prices have been decreasing during July, in spite of the high price of crude oil, which is currently trading in the $44.00 per barrel range. Late July gasoline inventories were approximately 3 million barrels higher than year-ago levels.

As of July 12, 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 and diesel prices is to reduce consumption. For a complete list of gas saving tips for drivers and more information on energy issues in general, please visit the State of Maine's new energy information website at www.maineenergyinfo.com . 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.