War in Iran Sends Heating Oil Prices Rising in Maine

Rising tensions overseas are now hitting home for families across Maine, as heating oil prices spike following the war in Iran.

After a colder-than-average winter already pushed home heating costs higher, prices jumped even more as global oil markets reacted to the conflict. Over the past week alone, No. 2 heating oil briefly climbed above $5 per gallon in some parts of the state.

As of Thursday, prices across Maine are ranging between $4.25 and $4.80 per gallon. For many households, that increase is putting added pressure on already tight budgets.

“All these prices are really crazy,” said heating oil customer Steve Rench. “We’re not all rich here.” Rench says the rising fuel costs are forcing his family to rethink how they manage their household expenses.

Global oil prices have surged as well. Crude oil has climbed from about $64.50 per barrel in January to more than $94 per barrel this week. Industry analysts say the conflict is creating major uncertainty in the global oil supply.

One major concern is the Strait of Hormuz, a critical shipping route for oil tankers in the Middle East. McClain says ongoing conflict in the region has made the passage unsafe for tankers, disrupting supply.

“Every single day that the Strait of Hormuz remains closed, the volatility will continue,” McClain said.

Energy officials in Maine say local fuel providers don’t control global oil prices, but they are doing what they can to support customers.

The Maine Energy Marketers Association says fuel dealers work hard to ensure no household goes without heat. For Rench, help has also come from family. He says his niece Mindy has stepped in to quietly help keep their tank full.

For families struggling with rising heating costs, MaineHousing’s Home Energy Assistance Program is still accepting applications through the end of April.