For Immediate Release

Contact: Ian Burnes, 287-8927

January 22, 2008

For Immediate Release                                                                   Contact: Ian Burnes
January 22, 2008                                                                                                  287-8927

Heating Fuel Prices Drop 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 down by $.04 since the last week at $3.30 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 2.98 per gallon was found in the Southwest region.  The high-end price of $3.45 per gallon was in found in the Eastern and Western regions.  The price of WTI crude oil at the last close down significantly from last week to $90.57 per barrel. This is a major driver of refined product prices, including heating oil. As of January 11, New England (PADD1a) heating oil inventories stood at 9,346 thousand barrels, or 3,205 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 22,  2008

The statewide kerosene price average is down by $0.05 since last week at $3.69 per gallon and $1.06 higher than last year at this time. Today’s propane price survey found the statewide average to be $2.97 per gallon which is $0.01 lower than last week and $0.63 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.

Because just about all economic activity in this country uses oil, when the economy is forecast to slow, as it is now, traders bid the price of oil down expecting that inventories of crude oil and its distillates will rise as the economy slows.  In fact as we write this release, crude oil had fallen almost 4% as worries about the global economy grow. Inventories of heating oil continue to increase in the northeast, but the total inventories are still near a five year low accounting for the near record price.

Maine’s energy information website at www.maineenergyinfo.com provides energy saving tips for homeowners, including expected costs and paybacks. Simple energy conservation steps can save hundreds of dollars this year in energy bills. For more information about the Maine Home Performance with Energy Star whole house energy efficiency program, visit www.mainehomeperformance.org