By Doug Fletcher,Staff Writer

Prices for heating oil and kerosene fell again during the past week as the lingering effects of Hurricanes Katrina and Rita subside.

Monday’s state survey found that the statewide average price for No. 2 oil – the fuel of choice for roughly 78 percent of Maine’s homes – dropped by a nickel over the week to $2.38 per gallon.

At that price, No. 2 remains 40 cents higher per gallon than the commodity cost a year ago.

The price for kerosene was down 5 cents to an average of $2.79 a gallon, but was still a 53-cent markup from this time in 2004.

The cost of propane rose by a penny to $2.26 per gallon. That’s up 25 cents over the fuel’s price a year ago.

The state’s Office of Energy Independence and Security, which conducts the weekly fuel price survey, said record imports of propane over the past few weeks have helped alleviate shortages that might have resulted from hurricane damage to Gulf Coast production facilities.

The state office also noted that while Northeast heating oil inventories are well above average for this time of year, inventories on the national level and in the Gulf Coast region haven’t bounced back from storm damage and resulting lost production.

Tight global markets are keeping imports of fuel oil and kerosene at weaker-than-normal levels.

Source: Maine Office of Energy Independence and Security