From Deseret News archives:

Gas hits new high — $3.47 per gallon

Utah's price is 15 cents below national average

Published: Friday, May 2, 2008 12:09 a.m. MDT
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"In the first quarter, the United States actually decreased usage and decreased demand, and refineries slowed down production to accommodate this decreased demand," Fairclough said. "Ten years ago, if there had been decreased demand, the price of oil would have plunged down. (The price) did nothing because what you have is the demand was offset by China and India and these burgeoning economies (that need oil.) We're looking at a whole different market than what we've had before."

Locally, Utahns drive more in the summer than in the winter, and gas prices increase with the growing demand. In the winter, Utah's gas prices have been among the lowest in the United States. In the summer, they're among the highest, she said.

Now is the time, Fairclough said, when gas prices should be increasing at a higher rate than the rest of the country. But that is not happening.

Lee Peacock, president of the Utah Petroleum Association, said prices in Utah are lower than other states because "Utah's refiners and suppliers have been able to keep an adequate supply of fuel in the marketplace."


Contributing: Associated Press.
E-mail: lhancock@desnews.com

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