A Closer Look

What exactly goes into determining the price per gallon of gasoline in southern Maine?

Here’s a breakdown, starting with the average wholesale price of $3.26 per gallon recorded by the Oil Price Information Service at the South Portland terminals on May 22:

Average wholesale price $3.26

Maine excise tax $0.276

Maine environmental fee $0.015

Federal excise tax $0.184

Transportation $0.05

(South Portland

to Augusta, for

example.)

Service station expenses $0.20

Credit card fee $0.08

Total retail price $4.24

Source: Maine Oil Dealers Association (www.meoil.com)

Gas prices in Cape Elizabeth and Scarborough are hovering between $1.75 and $1.99, half what they were last spring and summer, and experts anticipate those prices to stick around for the holidays.

That’s good news for consumers, said Scarborough resident Joseph Biscone, who also owns Highland Avenue Greenhouses in the town.

“I was spending nearly $100 for a full tank of gas during the summer,” said Biscone as he filled up his pickup truck at the Mobil station on Route 1 in Scarborough. “I’m only spending about $45 to fill my tank (today), which allows me to do more, such as eat out, make more trips and so on.”

Biscone also said that the lower prices help his business and his customers because he doesn’t need to raise greenhouse product prices to cover rising fuel costs.

“There comes a point when you could only charge the customer so much before you would lose business,” he said.

Lifestyles changed with gas over $4 a gallon. “The prices have been so awfully high that it’s been awfully difficult,” said Scarborough resident June Cassidy, filling up her car at the Sunoco on Route 1 in Scarborough. “Not that I wouldn’t buy gas, but I would consider where I was going and how much time I was spending on the road.

“These lower prices help a lot,” said Cassidy.

Experts say that prices could remain low for the near future.

“I don’t see any need for prices to go up in the near future, and I don’t foresee a return to the astronomical prices of spring,” said Chick Wilkins, spokesman for Maine oil, diesel and gasoline distributor C.N. Brown.

Prices are currently running 60 to 80 cents less than this time

last year. At the most, Wilkins said, he might expect prices to return to that level in coming months.

“I’m not sure anybody can put a prediction on that,” said Jamie Py, president and chief executive officer of the Maine Oil Dealers Association.

The oil dealers association tracks trends in the oil industry and,

according to its Web site, has more than 450 members, including 230 heating oil, propane, motor fuels and convenience store owners who serve more than 415,000 Maine households.

“There are two factors that really contribute to fuel prices: speculation in the financial markets and economic demand, which, right now, is economic collapse,” Py said. “If the speculation piece is dealt with in Congress, prices could stay reasonable, but we don’t know if Congress is going to act.”

One thing keeping prices low right now is that demand is down and conservation is up, Wilkins said.

“People are driving less and seeking fuel alternatives,” he said. “And even with prices down, we’re not seeing a lot of switching back from those alternative sources.

“When prices went up this spring,” he continued, “a lot of people went out and bought wood boilers, wood stoves and pellet stoves. They had them installed over the summer. It’s in their back yard. They’ve already got their money tied up in that.”

Despite the lower prices, consumers are still leery of the future.

“I’m still a little bit worried,” Cassidy said. “At least it’s better than it used to be, but you never know if they’re going to climb back up.”

While filling up his family’s Jeep Cherokee at the Big Apple convenience store and gas station in Sanford, Mike Delafontaine of Sanford said his family purchased and installed a wood stove over the summer and that they’re currently using that for heat.

But, he said, his family couldn’t abandon oil completely. “We just bought about 100 gallons” of heating oil for hot water, he said.

The 18-year-old said he made other changes himself when prices went up earlier this year.

“I went out and bought a 5-speed, 4-cylinder (Mitsubishi Eclipse),” he said. “I’ve bought and owned seven cars. It’s definitely the most fuel-efficient. I’m keeping it.”

Older adults agree: They’re not taking anything back.

“It used to cost me somewhere around $65 to fill up,” Curtis Ham of Sanford said as he topped off his Jeep Wrangler. “Today, it’s $28. But that doesn’t mean I’m going to go out and drive more. That’ll just make the demand go up again.”

Ham, who commutes 30 miles round-trip to work every day, said he also adjusted the thermostat at home and set it 10 degrees lower than he did last year.

“It’s going to stay right there, too,” he said. “Prices are down. It’s

easier on our budgets.”

Tim Graham, who recently moved to Gorham from Long Island, N.Y., said prices are still above $2 per gallon in his native state.

“They’re a lot better here and I’m not spending as much money for gas as I was,” Graham said while filling up his minivan for $1.75 per gallon at the Cumberland Farms on Route 77 in Cape Elizabeth.

Jonathan Mapes, owner and president of the gasoline and diesel

distributor H.A. Mapes in Springvale, predicted consumers could resume their bad habits, like driving alone instead of carpooling and making multiple trips instead of one.

“Americans tend to forget, and quickly,” he said.

In October, Mapes said, his company saw a “bit of a bump in gallons pumped overall,” but added he’s not sure if that is because the lower prices allow consumers to purchase more gas for the same price they were paying earlier this year, or if consumers were driving more and using more.

“I think prices have to stay down and consumers have to keep their new habits for the good of the world, not just the good of the country,” Mapes said. “This has to help a homeowner’s budget. It has to.”

It also helps fuel dealers’ and retailers’ budgets, he said.

“As a distributor, delivering 10,000 gallons at $4 a gallon is a greater credit risk than delivering 10,000 gallons at $2 a gallon,” Mapes explained. “We’re breathing a little easier, too.”

But when it comes to predicting fuel prices, Mapes and the experts at the Maine Oil Dealers Association agree.

“Really, nobody has the answers,” Mapes said.

(guy pumping gasGas1.jpg:) Tim Graham, who recently moved to Gorham from Long Island, N.Y., fills his car for $1.75 per gallon at Cumberland Farms on Route 77 in Cape Elizabeth. Gas2.jpg: Gas as of Monday was currently $1.75 per gallon at Cumberland Farms on Route 77 in Cape Elizabeth.