Utah gas prices surging

Utah gas prices continue to surge at the pumps, and Thursday the statewide average was $2.27 for a gallon of regular unleaded gasoline — 37 cents higher than last year's high of $1.90 for July 14.

Utahns experienced some relief in June when the statewide price-per-gallon average of regular-unleaded fuel dipped to $2.22, but that was short-lived.

"After the Memorial Day holiday, often we see prices going down because of less demand," said Rolayne Fairclough, Utah AAA spokeswoman.

Fairclough said that there was also a big surplus inventory in June, possibly because refineries were producing at peak levels. She said the nation set a highest-recorded price Thursday for regular-unleaded fuel with an average of $2.32 per gallon.

Utahns can expect little let-up in the future.

According to a short-term outlook release from the U.S. Energy Information Administration on July 12, 2005, gasoline pump prices for the summer — from April to September — are now projected to average $2.25 per gallon nationally. That is eight cents per gallon higher than last month's projection and about 35 cents per gallon higher than last year's level.

Lee Peacock, Utah Petroleum Association president, said that the single-most important factor in the price increase of fuel is the price of crude oil. The EIA report stated that crude oil prices are expected to remain high enough to keep the quarterly average of gasoline prices higher than $2.20 per gallon through 2006.

Oil prices were sitting at about $60 a barrel until they dropped by more than $2 a barrel Thursday, after forecasts showed that Hurricane Emily would not strike oil rigs in the Gulf of Mexico. Hurricane damage has played a key role in the price of fuel in the past.

"Last year there was huge infrastructure damage to the Gulf Coast," Fairclough said. "There is always that worry."

Fairclough said motorists should make sure their cars are in good condition and well maintained. She also suggests that people try to limit use of their vehicles.

"People need to try to be very frugal with that investment," Fairclough said. "Do what they need to do, and that is it."

Peacock said he doesn't like to predict the future of gas prices, but he doesn't think they will be dropping drastically anytime soon.

"It seems to me all factors are in place to have the current scenario continue in the future," Peacock said. "I just don't see anything out there that would cause a significant change."

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