For Immediate Release

Contact: Ian Burnes, 287-8927

February 11, 2008

For Immediate Release                                                                   Contact: Ian Burnes
February 11, 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 $.01 since the last week at $3.20  per gallon and $.89 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 2.83 per gallon was found in the Southwestern region.  The high-end price of $3.40 per gallon was in found in the Eastern region.  The price of WTI crude oil is climbed to $91.74 per barrel. This is a major driver of refined product prices, including heating oil. As of February 1, New England (PADD1a) heating oil inventories stood at 9,491 thousand barrels, or 922 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 February 11,  2008

The statewide kerosene price average is down by $0.02 since last week at $3.61 per gallon and $.89 higher than last year at this time. Today’s propane price survey found the statewide average to be $2.95 per gallon which is $0.01 less than last week and $0.61higher than last year at this time. This average price for propane represents the price per gallon for a 600-800 gallon domestic heating application.

Supply and demand pulled the crude oil market in two different directions last week. Marco-economic news pointing to a slowing economy and a shrinking demand for oil drove prices down early in the week to a low of $86. Later in the week a series of events caused concerns on the supply side; violence in Nigeria shut down exports; bad weather in the North Sea curtailed delivery of Brent crude; and at the end of the week OPEC made public that they would consider curtailing production to defend $80 a barrel oil price at their March meeting. The end result was that crude oil is now trading above $91 despite a weakening economy.

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