From Deseret News archives:
Utah has lowest gas prices in U.S. again
Local average is $2.08; costs rising across U.S.
It's the second straight month that Utah has had the lowest gas prices in the nation, according to AAA Utah.
"We are still hovering around $2, which is wonderful," notes John Hill with the Petroleum Marketers & Retailers Association.
Gas prices have risen eight cents since mid-December. An average gallon of regular unleaded in Utah now costs $2.08, according to the auto club, which regularly tracks gas prices nationwide.
"You don't have to be happy about it but just know that other places are feeling the pain much worse than we are," said AAA Utah spokeswoman Rolayne Fairclough.
Gas prices rose nationwide over the past month.
Data culled by the U.S. Department of Energy shows that, nationally, the average price of a gallon of unleaded regular is $2.33 up nine cents from a month ago. Prices are highest along the East Coast. National gas prices have risen 53 cents from January 2005 to January 2006.
And while demand for fuel usually declines in cold winter months, unseasonably high temperatures seem to be leading people to drive more, thus pushing up demand.
"Prices will probably inch up a little because the weather has been relatively mild so people are traveling more, which affects supply and demand," Hill said.
In the United States, Guy Caruso, head of the federal Energy Information Administration, told Bloomberg gas prices will go up as gas suppliers switch additives in their fuel from MTBE to ethanol.
Also, increased worldwide demand continues to push prices higher.
Demand "is outstripping the ability of the world energy investment to keep up in a way that allows enough flexibility in the system," Caruso said. "I don't see the refinery situation easing up at least through certainly '06, and probably not much in '07."
E-mail: bsnyder@desnews.com
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