The average price of a gallon of heating oil hit $6.02 last week, a new high record for the state, according to a weekly survey from the Maine Department of Energy Resources.
Wars in the Middle East and between Ukraine and Russia and a global shortage of refining capacity have sent distillate fuels such as diesel and heating oil soaring in recent months, said Jonathan Rubin, a professor of economics at the University of Maine.
Because of the war with Iran and closure of the Strait of Hormuz, refined oil products cannot get out of the Persian Gulf, Rubin said. Meanwhile, Ukraine has attacked Russian energy infrastructure and reduced Russian exports, Rubin added.
“It’s a worldwide issue. There’s some refining capacity in Mexico, there’s some in other places, but it’s going to take months if not longer to get that refining capacity up online,” Rubin said.
The Maine energy department said heating oil prices are up 81% from the same time last year. Filling a standard 250-gallon residential oil tank to capacity will cost $740 more than before the start of the war with Iran, the department added.
Acting Energy Commissioner Celina Cunningham said the price spike is indicative of Maine’s reliance on fossil fuels for winter heating. About half of Maine households use fuel oil for heating, the highest proportion in the country.
“Maine people are particularly susceptible to cost volatility stemming from global events and global markets,” Cunningham said. “We have no petroleum production, no refinery in the state so we are reliant on imported fuels.”
The department is urging residents to plan for the winter months by reaching out to fuel providers, exploring heating assistance, such as the Home Energy Assistance Program, and considering home efficiency options such as insulation and electric heat pumps.
Democratic gubernatorial candidate Hannah Pingree in a Friday statement urged Congress and the federal government to double the HEAP funding provided to the state in the face of expensive winter heating costs. Maine received almost $43 million in assistance funding last year.
“Providing relief this winter will be urgent and with this war continuing to push prices, the state and federal government needs to step up,” Pingree said in a statement.
Soaring winter fuel costs come as Maine residents face stubborn inflation and gasoline prices that hover around $4.40 a gallon.
Patrick Woodcock, CEO of the Maine State Chamber of Commerce, said spiking fuel costs will hurt struggling Maine families and small businesses.
“It’s a dramatic issue for households, for agriculture, for lobstering, anyone exposed to diesel prices,” Woodcock said.
There may be no relief in the near future. According to the U.S. Energy Information Administration, domestic distillate fuel supplies are running below the five-year low for much of 2027.
“We assume global production of distillate fuel will remain below last year’s levels in the coming months, contributing to low U.S. diesel inventories and high diesel prices,” the administration said in a short-term forecast.
This story appears through a media partnership with Maine Public.