By Doug Fletcher,Staff Writer

The price of No. 2 heating oil rose another 2 cents this week on top of a similar gain last week to reach a statewide average of $2.36 per gallon.

That’s 49 cents higher than a year ago, and last year’s prices were up nearly as much from a year earlier than that.

Kerosene also rose this week by 2 cents a gallon, to reach a statewide average of $2.75. That’s 61 cents a gallon more than it cost last year at this time.

Propane fell by a penny, to reach a statewide average of $2.22 per gallon, up 23 cents over last year’s price.

All the numbers come from the weekly survey done by the state’s Office of Energy Independence and Security.

Beth Nagusky, the office’s director, noted that the price increases come at a time when regional oil inventories are continuing to build by millions of gallons.

Typically, growing inventory would bring about price reductions. Not so this year.

“This is a world market,” Nagusky said, and global oil price fluctuations are determining how much Mainers are paying to keep warm.

“It’s a tight market,” she said.

Even oil dealers are complaining about the price fluctuations, especially the increases, at time when pressure on fuel oil should be easing due to the inventory growth.

Crude oil, however, has climbed back into the $64-per-barrel range – a range not seen since Hurricane Katrina left oil production facilities devastated along the Gulf Coast in September. Some of that increase on the global scene is a result of feuding between Russia and the Ukraine over the flow of natural gas from Russia through Ukraine to Europe.

Much of Europe’s heavy industry relies on Russian natural gas for power. With supplies crimped as a result of the flare-up between the two former Soviet partners, many of those European industries have switched to burning oil. That in turn puts more pressure on crude oil and ups the price.

There could be relief on the way soon, however.

Maine could announce an agreement with Venezuelan-owned Citgo Corp. by week’s end to purchase millions of gallons of No. 2 at a 40 percent discount. The fuel would be earmarked for the state’s neediest people, those taking part in the Low Income Home Energy Assistance Program.

Nagusky said she expects the deal to be sealed by Friday if not sooner. A similar deal was reached between Citgo and four Maine Indian tribes last week.

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