Factor in the recent 20-cents-a-gallon increase in diesel prices, and the fuel surcharge that the trucking company's customers pay jumps pretty quickly. "It's never that well received," said Mike Bunnell, CR England's senior vice president. "It's not a good thing at all."

State tax officials have their own worries about the impact of increased gas prices. Although motor fuel taxes have yet to be affected, studies have shown that a 10 percent jump in gas prices reduces consumption by as much as 4 percent over time.

And don't think higher gas prices mean the state is collecting more taxes. The state's share of taxes on gasoline is collected per gallon, so whether gas is $1 a gallon or $2, the state ends up getting the same amount — 24.5 cents per gallon.

Of even more concern, however, is what could happen to state sales tax collections.

"It's not because of people driving less that revenues go down," said Doug Macdonald, the state Tax Commission's chief economist. "But money is shifting from one part of a consumer budget" to another — gasoline.

Consumers end up cutting spending on entertainment, clothing, food and other items so they can afford higher gasoline prices, he said. The decrease in such spending could cost the state nearly $9 million this year, Macdonald projected.

That's a worst-case scenario, though. So far, sales and motor fuel tax collections aren't showing any signs of declining. The governor's office is keeping an eye out for possible budget shortfalls related to rising gas prices that could require emergency appropriations.

"It doesn't look like we're at that point yet," said Lynn Koga, the former state budget director and now Gov. Olene Walker's deputy chief of staff. "But definitely agencies are having to watch their budgets because it is hitting them."

Koga, however, remains optimistic that the state will still reach its overall revenue estimates "even despite any problems with the sales tax that might be created because of the gas price increase."

At the Utah Transit Authority, there are no plans to seek a fare increase or cut routes "at this point," according to spokesman Justin Jones. "We're not going to obviously rule it out."

With diesel prices zooming up nearly 50 percent over the same time last year, the bus system is already 2 percent over its $5 million annual fuel budget — that's $100,000. So far, there's enough money in UTA's contingency fund to take care of the increase.

"We are and will continue to watch the price of fuel," Jones said. "Our first option is always to cut non-service related budgets, non-service meaning any department that doesn't impact service to our riders."

Right now, that means less travel for employees and waiting longer to replace office equipment. Jones said UTA is counting on gas prices to drop again before the budget year ends on Dec. 31.