Minding Your Business Blog Index
August 13, 2008
Oil prices show they still can bite

Just when you thought you could catch your breath, fuel prices demonstrated today that they still have plenty of teeth.

Gasoline prices have been dropping fast in recent weeks, as anybody who drives a car is aware. The cost of a gallon of unleaded regular has dropped from $4.133 one month ago to $3.804 today, according to AAA.

The cost of heating oil also has fallen below $4 a gallon in the Portland area to $3.929, according to Energy Data Corp.

So, it's kind of discouraging to see that some folding business operations are still blaming high fuel prices as a culprit and planned projects are being dropped for the same reason.

Irving Forest Products Inc. has announced the closure of its Pinkham Sawmill in Aroostook County, with the loss of 44 jobs, saying that the weak economy and energy prices that went up 97 percent since 2000 led to its demise.

Statewide, motorists are going to have to put up with rough roads a little longer. The Maine Department of Transportation announced today that it plans to suspend many upcoming road projects because the skyrocketing price of petroleum-based liquid asphalt has climbed from $307.50 a ton in January to $765 per ton.

Local officials haven't taken their eye off the energy ball, despite the pull-back in prices during recent weeks. On Tuesday, Standish became the most-recent community to create a new fund to help needy residents pay for heating fuel this winter.

Good thing, too. Oil prices are on their way up again today. Enjoy the sunshine while it lasts.

Posted by Eric W Blom at 01:19 PM

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Eric Blom has been a journalist in Maine for 20 years, much of it as a business reporter and editor. He's been inside factories, office buildings and retail shops throughout the state, meeting with workers, shoppers, investors and executives about their hopes and fears. These days, as local and business news editor, he has a bird's eye view of what's happening in Maine commerce.

Eric, who was born in Rhode Island, has been heading north for some years now. He graduated from Boston University, edited a weekly newspaper in Belmont, Mass., and worked at the now-defunct Peabody Times in Massachusetts before coming to Maine. He lives in Portland with his wife and two children.

Knowing Maine's Business is a gathering spot for the respectful exchange of information and ideas about the marketplace.



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