Gasoline Prices

For Immediate Release Contact: John Kerry at 287-3292

August 23, 2004

Maine Diesel and Gasoline Prices Remain High, but Increases Stay Below those of Crude Oil

Statewide Average Gasoline Prices

In the southern areas of Maine surveyed by AAA, the current statewide average price for regular gasoline is $1.90 per gallon, one cent higher than last week and thirty cents higher than last year at this time. Bangor had the most significant increase of three cents in its average price for gasoline this week. Limited price information available for northern Maine indicates that prices for regular gasoline are higher there, with an average for the region in the $1.99 per gallon range. Diesel fuel prices have been increasing from a statewide average of $1.81 in mid-July to the current average of $1.94 per gallon. National gasoline inventories stood at 206.9 million barrels on August 13 th , down 3.5 million barrels from the week before and approximately 9.0 million barrels higher than year-ago levels.

Crude oil futures prices continued to rise last week as high as $49.27 after reports of fresh violence in Iraq , but ended the week at $47.60 per barrel. Markets were also jolted by reports of a pipeline attack in northern Iraq . Record breaking prices have been set in 14 out of the last 15 trading sessions on the NYMEX. U.S. futures, that is the price of oil for delivery in three months, have risen 30% since the end of June, fuelled in part by political instability in the Middle East and soaring demand from the U.S. and China.

As of August 23, 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 .