Utah gas prices are fourth-highest in U.S.

SALT LAKE CITY — Gas prices in Utah are the fourth-highest in the United States, according to a monthly AAA fuel survey.

The average price of a gallon of unleaded in the state is $3.14, which is 8 cents higher than last month's AAA report. Utah's gas prices are lower than those in Alaska, Hawaii and California.

Only nine states have prices above $3. The national average gas price is $2.90, according to AAA.

Turmoil in world markets has affected the price of a barrel of oil — which affects gas prices — more than the April 20 oil rig explosion in the Gulf of Mexico, said AAA Utah spokeswoman Rolayne Fairclough.

"The reason is those were exploratory wells," Fairclough said. "That product wasn't at play in the system. It's not like we lost a producing well with that."

She said she is not sure why Utah's prices are inconsistent with others nationwide, because supplies are high and demand is relatively low.

"The Intermountain West is considered an independent market for gasoline prices, … because we're really separate from the other markets," she said.

"The transport of fuel is more expensive here. … Also, the population is less dense, so you don't have the competition."

However, she said, Idaho has lower fuel prices than Utah, and much of that state's fuel comes from here. "It's really quite a puzzle."

Chaos in the European markets caused oil prices to fall $11 last week. On Tuesday, benchmark crude fell 43 cents to settle at $76.37 a barrel on the New York Mercantile Exchange. In London, Brent crude rose 37 cents to close at $80.49 on the ICE futures exchange.

"Much of the drop in prices was motivated by the significant decline in the strength of the euro against the dollar," Fairclough said. "This was caused by the European bailout situation."

Sixteen European Union countries created a bailout fund for Greece and other countries with mounting debt. The European debt problems have undermined investor confidence in the euro. The weakened euro strengthens the U.S. dollar. Oil is traded in U.S. dollars, and oil has just become more expensive for people holding euros who want to buy it.

So the euphoria over the economy, which is turning around after the recession, may be kept in check by the situation in Europe. "Hopefully, it'll keep prices from going to $90 a barrel for a while," Fairclough said.

AAA Utah surveys a handful of communities across the state. Individual gas stations sell fuel at higher and lower prices. AAA's report focuses on self-serve regular gasoline without regard to octane level.

All Utah cities surveyed by AAA reported increases except for Salt Lake City, where the price of $3.10 remained the same as last month. In St. George and Vernal, gas increased 12 cents to $3.15 and $3.11 per gallon, respectively.

Gas prices increased 9 cents in Logan and Provo to $3.14 and $3.12, respectively. Ogden's price increased 8 cents to $3.12, and Moab's price increased 4 cents to $3.08.

Contributing: The Associated Press

e-mail: lhancock@desnews.com