Utah gas prices lowest in U.S.

Utah typically has some of the highest gas prices in the country. But on Tuesday, the average price of regular unleaded, self-serve gasoline in the Beehive State was recorded as the nation's lowest.

The average price for gas in Utah was $2.00 per gallon on Tuesday, a 32-cent drop from last month, according to AAA. Nationwide, the average price of gas was $2.18. That's a 13-cent decrease over last month's prices but five cents higher than prices last week.

Industry experts were baffled by Utah's atypical prices. But it's an occurrence they said would not last very long. Market forces have a way of evening things out, according to Tom Kloza, chief oil analyst for the Oil Price Information Service.

"What's happening in your area is a little unique, and don't expect it to last very long," Kloza said. "Ultimately, economics dictate whether prices go higher or lower. The economics suggest we are seeing prices that are artificially low."

Gas-price Web sites list several stations in Davis County as having the lowest prices in Utah. The Conoco in Farmington (near Shepherd Lane and U.S. 89) had the state's lowest price at $1.74, according to www.utahgasprices.com. Stations near Bountiful had prices on Tuesday that ranged from $1.75 to $1.77.

John Hill, executive director of the Utah Petroleum Marketers & Retailers Association, said low prices in the Bountiful area could be attributed to the recent addition of a Costco warehouse, located on the border of West Bountiful and Bountiful.

"With Costco just entering the market, most neighboring competitors want to keep their customers loyal, and they'll match the price that Costco's marketing," he said.

While not as low as Davis County, prices also have fallen in other parts of the state, according to an AAA survey released Tuesday.

The average price in both Provo and Ogden was $1.93. That represents a 40-cent drop over the past month in Provo and a 27-cent decrease in Ogden. Logan's average fell 34 cents over the past month to $1.96; the price in St. George was down 28 cents from last month to $2.19.

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 even in the same city block.

Rolayne Fairclough, AAA spokeswoman, said motorists shouldn't rush to fill up their gas tanks because of Tuesday's low prices. Instead, the cost-conscious can save money by checking their vehicle's tire pressure and making sure fluid levels are OK and hoses are not worn out.

"That just really eats up fuel economy," she said.

Other suggestions include checking gas prices online, according to Fairclough. AAA has a Web site where it posts "real time information" on gas prices throughout the country. The AAA Web site is: www.aaa.com/gasprices. Other sites include GasPriceWatch.com and www.utahgasprices.com.

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Contributing: Greg Kratz, The Associated Press

E-mail: nwarburton@desnews.com