Prices to rise at the pump for Labor Day weekend

If you'll be loading up the car for a Labor Day weekend getaway, be warned: Gasoline prices are on the rise.

The average price for a gallon of unleaded regular gasoline in the Salt Lake Valley is about $1.32. That's up from an average price of $1.29 two weeks ago and $1.23 two months ago.The increase is due to several factors - a strong demand for gasoline, decreased production and supplies of gasoline and rising crude oil prices, according to economist Tom Brill of the Utah Office of Energy and Resource Planning.

"The demand for gasoline has been especially strong this summer," Brill said. "The economy is good and a lot of families are hitting the road for vacations."

Brill said the increasing popularity of sports-utility vehicles, which tend to get poorer gas mileage than conventional two-door and four-door cars, also means an increased demand for gas.

"Because of the sports-utility craze, the overall fuel efficiency of the automobile fleet is lower than in recent years," he said.

This strong demand coupled with a recent dip in gasoline production has contributed to the price increases. When gasoline stocks begin to drop, prices begin to rise, Brill said.

While gasoline supplies generally drop during the "summer driving season" stocks have been especially drained this summer by the unusually strong demand.

In addition, the price of crude oil has been rising since early June, which translates directly to higher prices at the pump.

But local drivers can take some comfort in the fact that prices are soon expected to drop. The same trends that lead to the rising prices are expected to reverse in the near future bringing gasoline prices down, according to Brill.

"It's very difficult to forecast gasoline prices, but we will probably see prices hold steady through Labor Day weekend and then begin to float down a bit," he said.

The summer driving season is coming to an end, which means less demand, gasoline production are back to normal levels and crude oil prices are now falling. An influx of crude oil from Europe, South America and the Middle East is expected to keep crude oil prices falling while at the same time boosting gasoline supplies, all of which should translate into lower gasoline prices at the pump.

The Labor Day weekend is one of the busiest driving weekends of the year and public officials are urging Utahns to drive with caution and courtesy.