Gasoline prices in Maine have continued to decline heading into the Independence Day weekend, offering drivers some relief at the pump after months of steep increases tied to the war with Iran.
The statewide average for a gallon of regular gasoline stood at $3.859 on Saturday, July 4, according to AAA. That was slightly higher than the national average of $3.810 per gallon.
Maine’s average has fallen by nearly eight cents over the past week, down from $3.938. Despite the recent decline, drivers are still paying significantly more than they were one year ago, when the statewide average stood at $3.082 per gallon.
That amounts to an increase of roughly 78 cents per gallon, or approximately 25 percent, compared with last summer.
Nationally, the average price has also fallen during the past week, dropping from $3.878 to $3.810 per gallon. The current national average remains about 66 cents higher than the $3.152 motorists were paying one year ago.
Diesel prices remain especially elevated in Maine. The statewide average for diesel is approximately $5.22 per gallon, compared with $3.89 one year ago.
The current prices remain well above the levels seen before the war with Iran began on February 28.
Gasoline in Maine was selling for approximately $2.98 per gallon before the conflict, meaning the current statewide average is nearly 88 cents higher. That represents an increase of roughly 30 percent since the start of the war.
Prices began rising rapidly in early March as global oil markets reacted to the fighting and growing concerns about shipping disruptions through the Strait of Hormuz, one of the world’s most important oil transit routes.
The national weekly average increased from $2.94 on February 23 to $3.02 on March 2. By March 9, the national average had surged to approximately $3.50 per gallon.
By the end of March, the national average had climbed to approximately $4.11 per gallon, marking an increase of nearly 38 percent from the beginning of the conflict.
Maine crossed the $4-per-gallon threshold in early April.
On April 7, the statewide average reached approximately $4.03 per gallon, up from $3.86 just one week earlier and $3.33 one month earlier.
Prices continued climbing through late April and early May as crude oil approached $100 per barrel and negotiations failed to produce a lasting resolution to the conflict.
The national average peaked at approximately $4.56 per gallon on May 21, while Maine prices reached nearly $4.50 per gallon.
The Memorial Day travel period brought some of the highest gasoline prices motorists had seen in years.
Prices began retreating in early June as crude oil moved below $100 per barrel and diplomatic efforts increased. On June 4, the national average dropped to $4.24 per gallon, falling approximately 18 cents in one week.
By June 18, the national average had fallen below $4 for the first time since March.
Maine’s statewide average dropped below $4 on June 24 as oil markets stabilized and expectations grew that shipping through the Strait of Hormuz could return to normal.
The July 4 statewide average of $3.859 is nearly 64 cents below Maine’s wartime peak. However, the price remains substantially higher than both last year’s level and the approximately $2.98 drivers were paying before the conflict began.
The lingering difference between oil prices and gasoline prices has become a growing source of frustration for motorists.
Crude-oil prices have now fallen back to levels last seen before the war began. Brent crude settled at $71.80 per barrel on July 2, while West Texas Intermediate closed at $68.69. Both benchmarks briefly reached their lowest levels since before the U.S.-Israeli war against Iran began in late February.
Those lower crude prices, however, have not yet been fully reflected at gas pumps across Maine or the rest of the country.
Although gasoline prices have declined from their wartime highs, retail prices remain considerably higher than they were when crude oil previously traded near its current level. Industry officials have blamed refining constraints, low inventories, shipping costs and the lag between changes in wholesale fuel markets and prices posted by individual retailers.
The issue has drawn the attention of President Donald Trump, who has warned gasoline retailers that pump prices must fall more quickly.
“Gasoline Retailers must get their Prices down, IMMEDIATELY,” Trump wrote in a social media post. “They’re too high considering that Oil is now at $68 a Barrel, and heading south.”
Trump urged retailers to begin targeting gasoline prices near $2.50 per gallon and warned that “big problems” could lie ahead if prices do not come down.
The Trump administration has also signaled that it is monitoring oil companies and retailers for possible price gouging as crude prices fall but gasoline remains elevated. The White House has warned that administrative action or investigations could follow if companies fail to pass lower energy costs on to consumers.
Treasury Secretary Scott Bessent issued a similar warning to the energy industry, saying the administration was watching fuel prices and calling on companies benefiting from higher profits to provide relief to American consumers.
Retail gasoline prices generally decline more slowly than crude oil because refiners, distributors and filling stations may still be selling fuel purchased earlier at higher wholesale prices. Reduced refinery capacity and tight supplies of finished gasoline can also prevent the full decline in crude prices from immediately reaching consumers.
Still, the widening gap between oil and retail gasoline prices has increased political pressure on producers, refiners and station operators.
For Maine drivers, the question is no longer whether crude-oil prices have returned to pre-war levels. They have.
The question is how long it will take before those savings finally reach the pump.
While Maine motorists are paying less than they did during the peak of the Iran conflict, they continue to pay considerably more than they were before the war began, despite the price of a barrel of oil returning to roughly the same level.
There’s one thing that people fail to recognize about this situation..America and all other countries run diesel. If you got it, a truck brought it.
Your gas will come down, your supplies will come down..and your services will do the same.
This all hinges on the price of diesel.
President Trump must realize this before the prices come down on anything.
I’ve been out here in this industry for 40 years, and this stuff has been going on for years.
Another point you have to consider..is these “speculation “by people who insist on causing a crisis.
Oh well
It gives the democrats and the trump haters just another thing to complain about .
Like Richard says …..the price will come down .
I’d rather pay a little more for gas for a while in order to be sure the fu*king crazy Iranians can’t have a nuclear weapon . A tiny bit of suffering now to prevent unimaginable suffering later .
“ An ounce of prevention now is worth more than a pound of cure later “
Be reminded that Gas was more expensive when Biden slept in the White House .
We survived then . Mandatory Masks and all .
On top of high fuel prices, we also cant forget the high cost of electricity delivery in this state. Another democrat involved plan that has already added to reasons why so many have left Maine. My actual usage last month for a 3 bed 2 bath home was 88.00
My delivery cost was 230.00
I also use diesel for my tractors to make my hay. I dont think i will be able to even afford to hay my fields this year due to the high cost of diesel and the high cost of CMP bills.
UNAFFORDABLE.
We need more refineries.
Thank you NIMBYs for stopping the one down in Robbinston 50 years ago.