For Immediate Release

Contact: Ian Burnes, 287-8927

June 11 , 2008

For Immediate Release                                                                           Contact: Ian Burnes
June 11th, 2008                                                                                                          287-8927

Heating Fuel Prices Rise Again

Augusta--- In the 18 years that the state has been monitoring the retail prices of heating oil in Maine the state has limited our survey to the “heating season” –from October 1st through the third week of March. The Governor’s Office of Energy Independence and Security (OEIS) has started the ‘08-‘09 oil survey four months early to provide Maine citizens with the best possible information in this challenging time of rapidly rising prices and has found that the current statewide average cash price for No. 2 heating oil to be at $4.60 per gallon.      

The Director of the OEIS John Kerry says that “initiating the survey is the first small step in a comprehensive interagency effort to help Maine businesses and families reduce the deleterious effects of rising prices of heating oil and transportation. At today’s prices Maine will spend more than $7.7 billion on petroleum products, the vast majority of which is paid to foreign oil producers. Understanding that this represents significant financial hardship to the state the Governor has reconvened the Pre-Emergency Task Force on Escalating Home heating and Diesel Fuel Prices to examine how we as a state can muster existing resources more effectively, leverage private philanthropy and build strategies to create significant new investment in energy efficiency and weatherization.”

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 $4.35 per gallon was found in the Southwestern region.  The high-end price of $4.80 per gallon was also found in the Eastern region. The price of WTI crude oil, major driver of refined product prices, including heating oil closed at 130.00 per barrel. The statewide kerosene price average is $4.98 per gallon at this time. The table below provides current Maine cash prices in dollars rounded to the nearest penny.

As Of June 10,  2008

 Since the last survey the average price of heating oil in Maine has risen by $.80 or 21% and $1.89 or 70% since the beginning of last heating season. The global market for all petroleum products but middle distillates like heating oil and diesel fuel has been extremely tight, as developing nations apatite for energy dramatically increases.

The best strategy Maine households and business have to reduce the financial burden caused by these prices is invest in energy efficiency measures. The first step in making these improvements is to have an energy audit at your home or business, and you can find an auditor near you at: www.mainehomeperformance.org . Once an audit is complete more than half of Maine household will qualify for a 1% loan through Maine State Housing’s Home Energy Loan Program: http://www.mainehousing.org/PROGRAMSHelp.aspx?ProgramID=32

 Many projects funded through this program save more money through the improvements then the loan payments they have to make. Businesses should take advantage of Efficiency Maine’s small business loan program to make energy upgrades: http://www.efficiencymaine.com/business_programs.htm