Gas prices in Utah drop 13 cents

Gasoline prices in Utah kept falling during the last month, bucking a national trend.

But that good news may not last for long.

AAA Utah reported Tuesday that the average cost for a gallon of regular unleaded gasoline in the state is $2.15, down 13 cents per gallon from the Jan. 16 AAA report.

Meanwhile, the national average is $2.23 for a gallon of regular unleaded, which is unchanged from last month's survey, AAA said.

"This may not last," said Sean Comey, AAA Utah spokesman. "Prices are rising in California, and often that market is an indication of upcoming national trends in fuel prices. We're approaching the time of year when refiners switch to a summer blend of gas, which helps reduce pollution, but it also costs more to make."

Mary Welge, an editor at Oil Price Information Service, said even $3.25 a gallon gasoline may hit California again this year.

"The next month or so you can expect prices to go up as you head into the spring driving season," Welge said. "In California, you are probably going to be up in the $3 (per gallon) neighborhood."

Much of that increase will be driven by oil prices, which jumped above $59 per barrel Tuesday, as the International Energy Agency forecast a strong increase in global demand this year and a snowstorm plowed toward the U.S. Northeast.

The IEA boosted its 2007 global oil demand forecast by 273,000 barrels per day to 86 million barrels per day on higher expectations for demand from China. The agency forecast 2006 global oil demand of 84.5 million barrels per day.

Light, sweet crude for March delivery jumped $1.25 to settle at $59.06 per barrel on the New York Mercantile Exchange. Prices climbed as high as $59.60 per barrel earlier in the session.

But for now, Utah drivers are enjoying lower pump prices. The AAA survey said Salt Lake City's average price is now $2.09 a gallon, down 12 cents from last month. Provo's price is down 13 cents, also to $2.09.

Logan's price has dropped 11 cents since January to $2.16, while Vernal's dropped 8 cents to $2.29 and Ogden's fell 13 cents to $2.11. St. George saw its average price for a gallon of regular unleaded edge down 7 cents to $2.25, while Moab saw a drop of 10 cents to $2.18.

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.

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Contributing: Los Angeles Daily News; The Associated Press