For Immediate Release

Contact: Ian Burnes, 287-8927

January 7, 2008

For Immediate Release                                                                   Contact: Ian Burnes
January 7, 2008                                                                                                  287-8927

Heating Fuel Prices Rise Again

Augusta--- The Office of Energy Independence and Security (OEIS) survey of home heating oil prices today found the current statewide average cash price for No. 2 heating oil to be up by $.07 since the last survey at $3.35 per gallon and $1.09 higher than last year at this time. It is important to note that the price for heating oil is a statewide average and that prices in a given geographic region of the state may be considerably higher or lower than the statewide average. Within the OEIS sample, the lowest actual heating oil price of $3.07 per gallon was found in the Southwest region.  The high-end price of $3.48 per gallon was in found in the Eastern region. The price of WTI crude oil at the last close was up from last week to $97.91 per barrel. This is a major driver of refined product prices, including heating oil. As of December 28, New England (PADD1a) heating oil inventories stood at 9,691 thousand barrels, or 3,315 thousand barrels less than last year at this time.  The table below provides current Maine cash prices in dollars rounded to the nearest penny.

As Of January 7, 2008

The statewide kerosene price average is up by $0.08    since last week at $3.75 per gallon and $1.09 higher than last year at this time. Today’s propane price survey found the statewide average to be $2.94 per gallon which is $0.01 lower than last week and $0.60 higher than last year at this time. This average price for propane represents the price per gallon for a 600-800 gallon domestic heating application.

In recent weeks the price heating oil in Maine has been rising setting a record for the third straight week. Looking at the inventory for distillate fuels (diesel, and #2 heating oil) can offer a partially explain the price hike. As the graphs below demonstrate inventories have dropped significantly, hitting near the bottom of the average range, and much of the drop in national inventories can be attributed to the east coast.