The Northeast heating oil reserves will be tapped for just the second time in history.
The federal government’s move comes after U.S. Sens. Angus King and Susan Collins in September called for reserves to be released as energy prices climb during President Donald Trump’s ongoing war in Iran.
Last week, the average price for a gallon of heating oil stood at $5.97 in Maine, down slightly from last month’s record high of $6.02 but still 80% higher than the same time last year.
That means it will cost Mainers an additional $731.50 to fill a standard 275-gallon tank.
In eastern and Down East Maine, prices range from a low of $5.50 to a high of $6.30.
Collins said Wednesday that she was glad the Trump administration acted on the request, saying the U.S. Department of Energy believes the release of approximately 315,000 barrels, or 13.2 million gallons, will “put downward pressure on home heating oil costs and make a real difference for Maine homeowners as they prepare for winter.”
The release, just the second made since the stockpile was created 26 years ago, amounts to a third of the Northeast reserves, some of which are kept in South Portland. The stockpile was last tapped in 2012 after Hurricane Sandy.
Gov. Janet Mills welcomed the news, saying she hopes that it provides Mainers “meaningful financial relief.”
“I also want to be clear: while we are hopeful this decision will ease prices for Maine people in the near-term, it will not solve the long-term problem driving up costs — the President’s war — and Maine people deserve long-term solutions that bring down costs, not just temporary relief from a crisis of the President’s own making,” she said in a statement.
Earlier this month, the Trump administration released about $37 million in low-income heating assistance for Maine. An additional $1.4 million was awarded to the state’s four federally recognized tribes.
About half of Maine households (more than 300,000) rely on heating oil to stay warm during the winter, and consumption can average 2 to 7 gallons a day, depending on how cold it is outside. This release would amount to approximately nine days of consumption at a rate of five gallons a day.
Trump’s ongoing war against Iran effectively halted fuel shipments out of the Strait of Hormuz, through which a fifth of the world’s natural gas and oil passes. The ongoing war between Russia and Ukraine also has strained global fuel supplies as both sides trade blows on each other’s energy infrastructure despite Trump’s push for an “energy ceasefire” as he moves ahead with plans to import Russian diesel.
“Maine has been hit especially hard by the run up in fuel prices since the beginning of the Iran War and the most obvious example is home heating oil,” King said in a statement. “Maine is one of the most dependent states in the country on home heating oil and the cost is absolutely through the roof. This release of stored oil in New England will hopefully be some help. While this is good news, we also want to keep pressuring the Administration to bring those prices down before winter really sets in.”
These reserves will be available on an exchange where companies can bid for a share of the barrels.