From Deseret News archives:

Gasoline 'gouging' elicits a rebuttal

Published: Monday, Oct. 16, 2006 8:27 p.m. MDT
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Rex Jensen, in an e-mail to the Deseret Morning News, said none of the report's findings explain why Utah gasoline prices have "historically been lower than surrounding states, then suddenly when gas prices are falling all over the country, they don't fall in Utah."

"For years, Utah gas prices were lower than Nevada, lower than Arizona, lower than Idaho, Washington and other Western states," Jensen said. "If all that nonsense the retailers and petroleum organization put forth as explanation were true, then what on earth explains how Utah has had such low-priced gasoline, comparatively, in the past?"

Dougher said the West has always been relatively isolated in sources of supply compared to other regions in the nation.

"So your prices will move sometimes slower than other prices because of that reason," she said. "Sometimes when you see a 'fat' refiner margin or a fat retailer margin, it's a very temporary thing, and you usually see them fat when prices are moving fast, when you see a sharp drop in crude oil prices.

"I would be really surprised by any evidence of any gouging other than the market really at work."

On Monday, Utah gasoline averaged $2.52 a gallon, 29 cents higher than the national average of $2.23, according to AAA.

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Nationally, the price of gasoline has fallen to its lowest level of the year, according to an Associated Press story. The federal Energy Information Administration said Monday that U.S. motorists paid $2.226 a gallon on average for regular grade last week, a decrease of 3.5 cents from the previous week.


E-mail: danderton@desnews.com

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