Maine heating oil prices surge 74% as Assistance Agencies face historic demand ahead of Winter

BANGOR, Maine (WABI) — As colder weather settles in, Maine families are staring down a sharp financial hit to heat their homes this winter, with heating oil prices surging near record highs and assistance agencies already overwhelmed by requests for aid.

The Maine Department of Energy Resources announced that the statewide average for heating oil reached $5.77 per gallon on Sept. 14—a 74 percent jump compared to the same time last year. Kerosene is averaging $6.57 per gallon.

For households with a standard 275-gallon tank, a full fill-up now costs nearly $675 more than it did a year ago. The current average sits just shy of Maine’s all-time record of $5.92 per gallon set in 2022.

Why Are Fuel Prices Spiking?

Energy experts point to global oil market disruptions as crude prices climbed from around $77 a barrel to more than $100.

“The real issue is that all kinds of oil product prices are based on the base oil prices, which are the dollars per barrel of crude oil,” said Steve Cunningham, a distinguished professor at Husson University. “This is largely because of the problems in Iran and the Strait of Hormuz… although we may have not personally been buying those barrels of oil, it goes into the world supply of oil and affects the overall price.”

Maine is uniquely vulnerable to these international shocks: roughly 50 percent of Maine households rely on heating oil, making it the most oil-dependent state in the nation.

“As the most heating oil-reliant state in the country, Maine people are particularly exposed to oil market price spikes,” said Celina Cunningham, Acting Commissioner of DOER. “Rising global energy prices driven by conflicts abroad are putting added pressure on households as we head into the winter heating season.”

Assistance Agencies Swamped by Early Calls

The spike is triggering an unprecedented surge in demand at community action agencies across the state, even as federal relief dollars remain weeks away.

“Calls are coming in so strongly, so early. We’ve never had the call volume in September that we do right now,” said Heidi Rackliffe, Chief Program Officer for Community Action in Aroostook, Washington, and Hancock counties. “We have 500 voicemails that we’re returning.”

Rackliffe noted that inflation has severely diminished the purchasing power of state aid.

“An average benefit for a family is about $525, and right now that’s not even covering 100 gallons of oil,” Rackliffe said. “I ordered 100 gallons of kerosene yesterday; it was $625. That is going to last a month, maybe, and we know in Maine the heating season goes well beyond a month. So what do individuals do when their heating costs for 100 gallons is more than half of their income?”

Federal Funding Delays and Appointment Backlogs

Agency leaders warn that even for approved applicants, relief checks do not flow immediately.

“Washington has to approve it first, then the OMB department has to release it to the states,” said Lynn Lugdon, Division Manager for Fuel Assistance at Penquis. “It goes to MaineHousing, and MaineHousing will distribute the funding to the fuel vendors or the electric companies. We will not have any HEAP funds at least until mid to end of October.”

Penquis has already processed more than 3,000 applications since Aug. 1—ahead of last year’s pace, when 9,200 out of 11,500 applicants received benefits. However, high demand has stretched agency resources thin.

“We do have our priority people booked first—and that’s anybody over 60, 72 months or younger, and disabled,” Lugdon said. “So we are booked out right now until the first week of January.”

Lugdon emphasized that homeowners must monitor their fuel levels closely: “Watch your oil tank, number one. If you run out of fuel, it’s going to cost you delivery fees.”

Resources and Next Steps for Maine Homeowners

State officials and advocates urge residents to reach out early and explore cost-saving measures before winter hits:

• Home Energy Assistance Program (HEAP): Administered by MaineHousing through regional community action agencies. Residents can schedule appointments through local agencies (Penquis intake line: 207-973-3500).
• Energy Crisis Intervention Program (ECIP): Opens Nov. 1 to provide one-time emergency fuel vendor payments for low-income households facing an immediate outage.
• Efficiency Maine Incentives: Includes instant discounts of $1,150 for heat pump water heaters (saving up to $650 annually on electric bills) and a limited-time $500 bonus alongside existing rebates for whole-home heat pump installations.
• Public Information Webinar: DOER, MaineHousing, and Efficiency Maine Trust will co-host a free informational webinar on Friday, Oct. 2, from 11 a.m. to noon. Register Here.

“We’re going to need kindness more than we ever have in these hardships,” Rackliffe added. “Our employees are doing the best that they can… we all are, and we’re just going to need to be together as much as we can this year.”

To learn more about Penquis’ Heating Assistance Program click here.

To learn more about ACAP and their Home Energy Assistance program follow this link.