Sadly small 'bang for the buck'
Utah gas prices are up 42¢ from last month — averaging $3.21
That's because motorists in Utah and nationwide are forking over record high amounts for gasoline, according to AAA, which on Tuesday described Utah prices as "just ghastly."
AAA said Utahns are paying an average of $3.21 for a gallon of regular, self-serve gasoline. That's up 42 cents from last month and 30 cents above the average a year ago.
Nationwide, the average of $3.09 also set a record, topping out at 22 cents above last month's average and 16 cents above the year-ago figure.
Since the beginning of the year, the national average is up from $2.32. With an average of $3.07 per gallon — as it was a couple of days ago — a typical family owning two vehicles and using 1,200 gallons of gasoline per year spends about $3,687.60, or about $307 each month, according to AAA.
And the rise in prices may not be over yet.
Gasoline and oil futures settled higher Tuesday on news that protests in Nigeria have cut oil production by 170,000 barrels per day. In futures trading on the New York Mercantile Exchange, gasoline for June delivery gained 0.04 cent to settle at $2.3016. Light, sweet crude for June rose 71 cents to settle at $63.71 a barrel on the Nymex.
Among Utah cities in the AAA survey, Moab had the smallest increase at 27 cents from a month ago, but it had the highest average price, $3.22. Salt Lake had the lowest average, at $3.17. Ogden, Salt Lake, Provo and St. George each saw prices rise 41 cents over the past month.
AAA Utah surveys a limited number of communities across the state in its monthly gas report. Individual service stations sell gas at both higher and lower prices, sometimes in the same city block. AAA's report focuses on self-serve regular gasoline without regard to its octane level.
A dozen states have higher average prices than Utah. Among adjoining states, Colorado saw the biggest increase, 43 cents, to make its average $3.25. Nevada's was also at $3.25, up 18 cents.
California's $3.48 leads the country and represented a rise of 14 cents. South Carolina's $2.84 is the lowest average nationwide.
On the national front, scattered reports of minor refinery outages continue, analysts say, giving traders further reason to drive prices higher.
"The market is on fire," said Fadel Gheit, an analyst at Oppenheimer & Co.
Yet, for all their complaining as they pay $3 a gallon or more to fill up their cars, few American drivers have yet to reach the point of cutting back. That's the message from government statistics showing that demand for gasoline is only just starting to level off.
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