State energy officials say the price of heating oil has dropped to a statewide average $3.44 per gallon, 40 cents lower than the season’s peak price. The Governor’s Energy Office on Wednesday attributed the falling prices to decreased demand as the weather warms up, and a boost in domestic crude oil production. Average prices were lowest in the southwest areas of the state and highest in northern areas. Kersosene prices are also falling, down to $3.91 per gallon, 40 cents lower than this season’s peak. Propane prices are holding relatively steady, down 4 cents to an average of $2.73 per gallon.