Season brings a spring in gas prices

Friday's sunny, warmer weather was a good indication spring has finally arrived along the Wasatch Front.

But there was another, less welcome reminder that spring is here: Gasoline prices were shooting up faster than a lawn soaked with fertilizer.

In just the past few days, the price for a gallon of unleaded regular along the Wasatch Front has risen 10 to 15 cents — more in some cases — at many stations. And industry analysts say Utah's current average of $2.49 per gallon could increase to $3 before the summer of 2006 hits its peak. Perhaps before it even arrives.

Many factors are fueling the recent spike, not the least of which is the rising cost of crude oil. Crude hit a new record Friday, topping out at more than $75 per barrel, reflecting concerns about Iran's desire for nuclear weapons and the tight supply of gasoline here in the United States.

Crude oil prices are now 40 percent higher than one year ago and could go higher as international pressure builds on Iran, which is OPEC's second-largest source of oil.

"You put all these headlines together, you see the situation is getting charged up and getting out of control. That's why oil traders and speculators are having a field day. This is exactly the kind of environment that speculators want to operate in," said Oppenheimer & Co. oil analyst Fadel Gheit.

U.S. refineries are performing seasonal maintenance on a greater scale this year, given the destruction wrought by last fall's hurricanes that battered the Gulf Coast. Also, the transition from gasoline additive MTBE, which has been found to be a groundwater pollutant, to ethanol is creating additional fears about an already tight gasoline market. The concerns are particularly affecting gas prices in the Mid-Atlantic states, said AAA Utah spokeswoman Rolayne Fairclough.

"If you look state-by-state, some of them are at $3 per gallon now," Fairclough noted. "The price in the Intermountain West is still significantly less than in other parts of the country."

The national average Friday for unleaded regular was $2.86 per gallon, up 3 cents from Thursday and up 35 cents from the same day last month.

Hawaii, Washington, D.C., and New York already are coping with averages above $3 per gallon, with Hawaii leading the nation at $3.16 per gallon, according to AAA. Utah's average is, in fact, the lowest in the nation at $248.5, with Wyoming close behind at $2.49.1 and Montana at $2.54.2.