Utah gas prices fall, buck national trend

Published: Wednesday, July 12, 2006 9:32 a.m. MDT
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Despite oil prices hovering near $74 per barrel, Utahns have seen some relief at the gas pump in the past month.

AAA Utah reported Tuesday that the average price for a gallon of regular self-serve gasoline in Utah was $2.87, down 3 cents from last month but up 62 cents from last year.

The national average, AAA said, is $2.97 per gallon, which is 7 cents higher than last month and 68 cents higher than last year.

"Even though prices in the West are dropping, the national average price has jumped," said Rolayne Fairclough, AAA Utah spokeswoman, in a prepared statement. "Demand from holiday travelers and the price of oil near $74 per barrel are part of the reason for this increase."

The AAA report said Utah's average price in June was in the top 20 in the country, but this month, only 11 states have average prices lowet than Utah's.

For example, Idaho's current average price is $2.89 per gallon, and Colorado's average is $2.95. But Wyoming's average is only $2.81, and Montana's is $2.85.

AAA said gasoline prices dropped or remained the same in Utah cities it surveyed. Ogden residents saw the largest price drop in the last month, down 8 cents to $2.82 per gallon. The Salt Lake average fell 4 cents to $2.81, while the Provo average dropped 2 cents to $2.86.

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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. AAA's report focuses on self-serve regular gasoline without regard to its octane level.

With continuing international political issues and the approach of hurricane season, motorists should plan on continued high gasoline prices, AAA said.

Oil prices rose Tuesday as Iran dashed hopes of a breakthrough in talks with the European Union about its nuclear program.

Light sweet crude for August delivery rose 55 cents to settle at $74.16 a barrel on the New York Mercantile Exchange, where gasoline futures advanced by 1.78 cent to close at $2.1925 a gallon. Heating oil futures jumped by 4.61 cents to settle at $2.0106 a gallon.

Analysts say the main geopolitical concern affecting the market these days is the standoff between Iran and the West over its nuclear program. Some fear that Iran, the second-biggest exporter in the Organization for Petroleum Exporting Countries, may withhold oil if the dispute escalates.

Government data showing rising gasoline demand is also keeping a high floor beneath the cost of crude, analysts said.


Contributing: The Associated Press

E-mail: gkratz@desnews.com

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