Maine Heating Fuel Prices Near $5 Per Gallon Amid Iran War Volatility

Heating oil prices climbed $1.15 per gallon, or 30%, since Feb. 23, reaching a statewide average of $4.97 per gallon on March 16, according to the Maine Department of Energy Resources' weekly fuel survey. The DOER pointed directly to the start of the conflict in Iran as the trigger for the spike. For households in Sagadahoc County, which falls within the Southeast/Greater Portland DOER region, people in Sagadahoc County are paying up to five cents more per gallon than the statewide average.

Based on a standard 275-gallon oil tank, homeowners are now estimated to pay approximately $316 more to fill their tank to capacity than they would have on Feb. 23, according to DOER. Kerosene fared no better: kerosene prices reached $5.87 per gallon on March 16. Propane averaged $3.42 statewide, according to the DOER table. The Southeast/Greater Portland region saw heating oil average exactly $5.00 per gallon, while the statewide high reached $5.80 at some retailers and the low sat at $3.29, illustrating just how wide the spread has become across the state.

"As conflicts abroad continue to drive energy prices higher, Maine families are once again feeling the impact — a direct result of our dependence on foreign oil," said Dan Burgess, Acting Commissioner of the DOER. "With rising costs and more cold weather on the way, we encourage consumers to stay informed of current fuel prices, review incentive options through Efficiency Maine, and to contact their Community Action Agency if they need immediate relief."

The price surge lands hardest in a state already disproportionately dependent on oil heat. Maine consumes more residential heating oil per capita than any other U.S. state, and approximately 50% of all Maine households rely on fuel oil as their primary heat source, down from 70% in 2010. According to the U.S. Energy Information Administration, Maine had the twelfth highest per-gallon residential propane prices in the nation and the tenth highest per-gallon residential fuel oil prices.

The pain at the pump extends beyond heating fuel. According to AAA, Maine's average for regular gasoline on the week of March 16 was $3.66 per gallon, up from $3.48 the prior week and $2.91 a month earlier. Diesel stood at $5.25 per gallon, up from $5.02 the week before and $4.34 a month ago. For context, the highest recorded average gas price in Maine was $5.09 on June 16, 2022, and diesel reached a record $6.37 per gallon on May 18, 2022.

A delivery driver with Doge Energy was photographed filling an oil truck at the Sprague Energy Terminal in South Portland in March, a scene that has become routine as the terminal works to keep pace with surging demand across southern Maine.

With prices volatile and winter not yet over, MaineHousing Director Dan Brennan urged residents not to wait. "MaineHousing and our community action agency partners across Maine stand ready to help as we head through the final weeks of winter and energy prices continue to climb," Brennan said. He added: "We know spring is approaching, and warmer days are ahead. But now is the time to apply for heating assistance if you haven't already."

The state's Home Energy Assistance Program (HEAP) is accepting applications through May 29, and at this time there is no waitlist for benefits. Households in crisis may qualify for the Energy Crisis Intervention Program (ECIP), which provides a one-time benefit of up to $500. To be eligible, households must qualify for HEAP and be without heat or have less than a seven-day supply of fuel; ECIP applications remain open until April 30, 2026.

GasBuddy petroleum analyst Matt McClain attributed the ongoing volatility to the closure of the Strait of Hormuz, a critical oil shipping route. "The Strait of Hormuz doesn't seem to be budging anywhere. It's closed. It remains closed, and we don't see a viable option for getting it open in the very near term," McClain said. "Every single day that the Strait of Hormuz remains closed, the volatility shall continue."

The DOER's fuel price survey is conducted weekly during the heating season and reflects spot cash prices, not pre-buy or discounted contract rates. Consumers can use the DOER's online calculator to estimate their home heating costs across different fuel types and heating systems.