Federal heating oil reserve release could bring savings for Maine homeowners

BANGOR — As heating oil prices climb ahead of winter, the Trump administration is making 315,000 barrels of fuel available from a federal reserve in an effort to ease costs for homeowners in Maine and across the Northeast.

The U.S. Department of Energy announced Wednesday that it will release the oil from the Northeast Home Heating Oil Reserve.

Jonathan Rubin, an economics professor at the University of Maine, said the program is structured as an exchange, meaning companies that receive the oil must replace it before the beginning of 2027.

“It’s an exchange, which means that the private companies, oil companies or brokers who want to take possession of this home heating oil need to replace it before the beginning of next year, 2027,” Rubin said.

In a statement, Energy Secretary Chris Wright said the decision is part of the administration’s commitment to “doing everything in our power to lower energy costs for the American people.”

Exactly how much Mainers could save remains uncertain. Rubin said the impact will depend on how quickly companies make the additional supply available.

“The private companies will take possession of this home heating oil and sell it to people, homes and businesses,” Rubin said. “They could choose to say, let’s take this additional volume and make it all available in November or say all available in December, or they can spread it out over the entire home heating oil season. The price effects will really depend upon how quickly it’s released.”

For a 150 gallon delivery, Rubin estimates the savings could reach about $90 if the oil becomes available over one month. If the supply is spread across the entire heating season, the savings could be closer to $9.

“There’s quite a range in possible impacts depending upon how this home heating oil is made available,” Rubin said.

For Maine homeowners preparing for winter, the reserve release could offer some relief, but the amount they save will depend on when the additional fuel reaches the market.