Despite drop, Utah has 5th highest gas prices

State's Commerce Department unable to pinpoint reasons why

Published: Wednesday, Oct. 15, 2008 12:06 a.m. MDT
 |  E-MAIL | PRINT | FONT + - 
Gas prices have dropped since all-time highs over the summer, but the average price of a gallon of regular unleaded in Utah remains the fifth-highest in the United States.

On Tuesday, the average price in Utah was $3.44, 78 cents lower than the highest price of $4.22 on July 18, but higher than the national average price Tuesday of $3.16, according to AAA.

Heidi Bean of West Valley City filled up her midsize sedan for $50 Tuesday, an $18 decrease from higher prices in the summer. Lower gas prices are a relief for Bean, who fills up two or three times a week. "I drive a ton," she said. "I clean homes, so I drive from house to house."

Over the summer, Bean raised the price of her house-cleaning services to help absorb the overall inflation increases, but she opted against adding a fuel surcharge, for fear of losing customers. When the economy tanks, "housekeeping is the first to go" from a family's budget, she said.

Despite the lower prices Tuesday, Bean was not happy that they remain among the highest in the country. "I'd like us to be average," she said.

Part of the reason for declining gas prices is that global oil prices are decreasing. Light, sweet crude for November delivery closed at $78.63 a barrel on the New York Mercantile Exchange on Tuesday.

Story continues below

But it's hard to pinpoint exactly why Utah's gas prices remain so high in comparison with the rest of the country. In mid-August, Gov. Jon Huntsman Jr. ordered state agencies to "monitor and analyze" the situation.

"All we were told was to just take a look at the prices, which we did," said Francine Giani, executive director of the Utah Department of Commerce. "As we were doing that, the prices were starting to come down, although very slowly. We tend to come up quickly and come down slowly."

Since Giani wasn't asked to conduct a full-blown investigation, she didn't look at gas prices over time. A government-records request by the Deseret News to her office shows that oil refineries and retailers have refused to release information to her in recent years, claiming they did not want to reveal proprietary information.

The Commerce Department cannot subpoena people or records. "The attorney general could do that under an anti-trust investigation, but that's not part of our purview," Giani said.

The Utah Attorney General's Office is not working on any anti-trust case involving gasoline prices, said Tony Patterson, an assistant attorney general.

"We would have to have some type of report that individuals or companies are meeting together and are entering into some type of agreement to artificially inflate the price of fuel," he said. "And if that was occurring, who would have access to that conversation, who would actually report it to the state?"

Recent comments

Everyone is missing something here. The media and the Utah goverment...

Sick of it!! | Oct. 17, 2008 at 10:24 a.m.

The oil companies realized that they only have until the election to...

34 mpg | Oct. 16, 2008 at 5:26 p.m.

Some other points for interested parties: there are the matters of...

John | Oct. 16, 2008 at 1:48 p.m.

Image
Tom Smart, Deseret News

A Maverik store in Salt Lake City shows gas at $3.17 per gallon, below Utah's average of $3.44 on Tuesday.

previousnext

Latest comments

This is a tragedy. I don't understand how this could've been going on for 2...

Was impressed with Gay's run today; can't wait for world championships to...

Pratty Was more than a father to me. I looked up to him so much. He made me...

Love you Millie, but you are not worth that much. If the Jazz match this...

If the Jazz want to get better and not be a so so team every year, it has to...

Fedor is right. I loved Millsap and don't blame him at all for signing the...

For those of you who are advocating that the Jazz let Milsap walk cause the...

Go get Drew Gooden who is unrestricted, and will be a better fit for a backup...

Longing for world championships to start. Gay/Bolt/Powell matchup will be the...

The contract offered to Milsap is similar to the original one the Jazz gave...

Advertisements