For Immediate Release Contact: Beth Nagusky

August 9, 2004 287-4315

Maine Diesel and Gasoline Prices Still High

Statewide Average Gasoline Prices

In the southern areas of Maine surveyed by AAA, the current statewide average price for regular gasoline is $1.89 per gallon, the same as the national average retail price. This represents a three 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, with an average for the region in the $2.04 per gallon range. Diesel fuel prices have been increasing from a statewide average of $1.81 in mid-July to the current average of $1.89 per gallon. National gasoline inventories stood at 212.8 million barrels on July 30 th , up 3.5 million barrels from the week before and approximately 11 million barrels higher than year-ago levels.

Crude oil futures prices hit $44.73 per barrel last Friday, the highest level in the 21-year history of the futures market. World markets responded to the Russian government's refusal to provide previously promised financial aid to troubled oil giant Yukos , which owes billions of dollars in back taxes. Also, there are concerns about production in Nigeria due to labor unrest and in Venezuela due to political uncertainty. OPEC says it is on standby to increase oil supplies by up to 1.5 million barrels per day but no decision will be made nor action taken on this until the meeting of OPEC ministers in September. The main reason for soaring prices is that global demand has risen faster than producers expected leaving the market with very little cushion. PFC Energy, a Washington based consulting firm, estimates that total global production will average 82.1 million barrels per day in 2004, or just 100,000 barrels a day above the rate of consumption.

As of August 9, 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 .