Utah gasoline prices same as last month

Oil prices keep falling, but Utah's gasoline prices don't.

AAA Utah reported Tuesday that the average price for a gallon of regular, self-serve gasoline in the state was $2.28, which was the same as the average price during AAA's previous survey on Dec. 12.

That figure is 16 cents higher than the average price a year ago and 5 cents higher than the current national average of $2.23 a gallon, AAA said.

"The drop in oil prices in the past few weeks from above $60 to the low $50 range has helped push down the cost of gasoline," said Rolayne Fairclough, spokes- woman for AAA Utah, in a prepared statement. "In addition, oil and gasoline inventories have been growing for months. The relatively warm winter temperatures across the East Coast and Europe, combined with a light hurricane season in 2006, have given the oil industry time to stock up supplies."

Oil prices dropped below $52 a barrel to new 19-month lows Tuesday on a report that OPEC powerhouse Saudi Arabia said further production cuts aren't necessary right now.

Crude oil has fallen more than 16 percent this year. Some market participants believe that another production cut by the Organization of Petroleum Exporting Countries could halt the price drop, but until that happens, there's little to stop prices from sliding further.

"It doesn't feel like it's run its course yet. It will probably fall below $50 a barrel — then the Saudis may be more amenable to an emergency meeting," said Jim Ritterbusch, president of Ritterbusch & Associates in Galena, Ill.

Light sweet crude futures for February fell $1.59 to settle at $51.21 Tuesday on the New York Mercantile Exchange, after hitting a low of $50.53 in earlier trading. Tuesday's settlement price was the lowest since May 26, 2005, when crude closed at $51.01.

The big drop in oil meant most Western states saw falling gasoline prices during the past month. Idaho's average dropped 7 cents to $2.31 a gallon, while Montana's fell 15 cents to $2.19. Wyoming's price also is $2.19, a drop of 7 cents from December. However, California's price increased 4 cents to a current average of $2.61.

Prices also generally dropped in Utah's cities. Salt Lake City's average price of $2.21 is the same as it was in December, while Logan saw its price fall by 2 cents to $2.27 a gallon. St. George's price dropped 5 cents to $2.32, while Moab's price plummeted 17 cents to $2.28 and Provo's increased 1 cent to $2.22.

AAA Utah surveys a limited number of communities across the state in its monthly gas report. Individual service stations sell gas at both higher and lower prices, sometimes in the same city block. AAA's report focuses on self-serve regular gasoline without regard to its octane level.

"If the price of oil stays near $50 per barrel, the price of gasoline should continue to drop. But if oil-producing countries aggressively curtail production, prices may increase," Fairclough said. "The winter weather and the increased demands for heating oil may impact the inventory surplus and force prices higher."

---

Contributing: The Associated Press; Greg Kratz