Gas prices fuel holiday cheer
Suppliers' lower costs bring decrease at pumps

With regular unleaded gasoline at 85.9 cents a gallon at some service stations, Salt Lake area drivers are saying ho ho ho! all the way to the pump.

"I can't believe how cheap gas is," said Eric Ferguson, 26, at the Holiday service station at Highland Drive and 4780 South. "It's nice, really nice, especially for us because we burn a lot of gas," said Ferguson. He works for a landscaping company in Murray.On Monday afternoon, Holiday was selling regular unleaded for 87.9 cents, plus for 97.9 cents and premium for 107.9 cents. Two weeks ago, the station was selling regular for 102.9 cents a gallon, plus for 111.9 and premium for 120.9.

From Centerville to Sandy, gas station managers at 12 randomly surveyed gas stations reported similar drops in prices in the past two or three weeks. Several said they are selling for less because they are getting cheaper gas from their suppliers.

Prices at the stations surveyed have dropped between 10 to 15 cents in recent weeks. However, prices in suburban areas are lower by as much as 10 cents a gallon in some cases, compared to central city and highway interchange prices.

At the Holiday station, manager Sergio Muniz, 27, was keeping a sharp eye on the price signs at the 7-Eleven across the street.

"About 10 minutes ago, 7-Eleven dropped two pennies, so we matched them," said Muniz.

Muniz said his station likes to be the area's price leader and he's not about to let anybody get the drop on him. His assistant gloated about the fact that the manager of another major chain station across the way was selling gas for a few pennies more and has less flexibility because he has to get permission from higher ups to change his prices.

"As long as everybody keeps going down, we'll keep going down," said Muniz.

The cheapest gas found among the stations surveyed was at the Maverick Country Store and Bakery at State Street and 9400 South in Sandy. The cash price of regular was 85.9 cents.

Manager Jennifer Capson said the price drop has been great for business.

"I love it. My gas sales are up and my in-store sales are up," said Capson. She said she couldn't remember the last time gas had been this cheap.

Gasoline prices will probably continue to be low in the short term, said Thomas Brill, an economist with the Energy Office of the Utah Department of Natural Resources.