Gas prices dip in U.S. but edge up in Utah
Other Western states also see an increase
AAA of Utah reported Tuesday that the average price of regular, self-serve gasoline in Utah is $3.25 per gallon. That's 4 cents higher than last month. Nationwide, the average price is $3.07, or 2 cents lower than last month.
In Wyoming, the cost of gas is 11 cents higher than last month. Montana had an 8-cent price increase, while Idaho had a 6-cent price increase.
Industry experts said the still-high gas prices may be because Utah and the West are recovering more slowly from an oil inventory shortage last month. Also, summer is a high travel season, and more people are buying gasoline.
"The refineries are behind," said John P. Hill, president of the Utah Petroleum Marketers and Retailers Association. "They don't have enough supply for us, and consequently, retailers ... can't get as much as they want, which makes prices go up."
Lee Peacock, president of the Utah Petroleum Association, said Utah's five refineries were short on inventory last month but are "working as hard as (they) can" to increase supply. He said Utahns should remember that prices fluctuate and the state could soon drop below the national average.
But most Western states still have higher prices at the pump than last month. The exceptions were California, which had an 18-cent price decrease over last month; Arizona, which had a 3-cent decrease; and Nevada, with a 1-cent decrease.
In Utah, most cities had a price increase. Logan was the exception, with a 2-cent decrease over last month. In Moab, gas prices rose 14 cents a gallon over last month. In Vernal, prices increased 9 cents. Salt Lake City had a 2-cent increase, while prices in the Provo area rose 5 cents.
Still, industry experts are predicting a decrease in gas prices over the short term. On Tuesday, the Associated Press reported that oil and gasoline futures fell as a result of expectations that a government report would show an increase in gas inventories — thus prompting a decrease in fuel prices.
The news agency also reported that Iran's oil minister said there is no shortage of crude oil, and thus no need for OPEC to boost production.
"I think the market's being pressured downward by profit-taking," said Addison Armstrong, an analyst at TFS Energy, a Stamford, Conn., energy brokerage.
But for people still concerned about their fuel efficiency, AAA offers several tips: Drive the speed limit, don't idle your car, replace air filters and make sure tires are properly inflated. Also, to check for low gas prices, log on to: www.aaa.com/gasprices, which will show prices at more than 85,000 stations in the United States.
Contributing: Associated Press.
E-mail: nwarburton@desnews.com
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