It’s one of those nasty milestones: Lewiston-Auburn’s passed the $3-a-gallon-mark for home heating oil.
This same week last year, the state average was $2.20. While at least one local dealer was priced at $2.83 on Friday afternoon, others were asking $3.04 or more.
“We didn’t think we’d see it this soon,” said Jamie Py, president of the Maine Oil Dealers Association. “All I can say…the fundamentals, the supply and demand, do not support where the prices are.”
Further hurting homeowners: Half as many people opted for early-season caps or prebuy plans this winter because they lost money in those plans last winter, so more are feeling every nickel increase.
Skeptical of where the high prices are coming from, Py said his group plans to join a coalition of about 150 others next week in support of a bill by U.S. Sen. Carl Levin of Michigan targeting price manipulation and more oversight of the commodities market. A vote is expected soon, Py said, and just talking about more regulation might lower prices.
“What’s happening, it’s all based on trading,” said Chris Brown, who has run the price-comparison Web site maineoil.com for eight heating seasons. He believes, “There’s no shortage of oil, there hasn’t been for years.”
What’s going on in the world, down to the concept of hostilities with Iran, influences price, Brown said. He suggested consumers: “Watch your tank level, watch the news, tank, news, tank, news. (Just) don’t let it get down to the sludge.”
One place blame doesn’t lie is with local oil dealers, he added. Most charge a set amount to cover the cost of trucks, drivers and insurance; that stays the same ,whether the price is $2 or $3, Brown said.
The next statewide fuel price survey from the State Planning Office, a weekly look at the highs and lows across Maine, is due Monday.
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