Idaho gas prices surpass Utah's

Published: Sunday, July 4 2010 1:24 a.m. MDT

SALT LAKE CITY — For the first time since February, Utah gasoline prices have dipped lower than those in its neighbor to the north.

With an average gallon costing $2.90 in Idaho and $2.88 in Utah on Friday, gas prices now reflect the historical trend of Idaho having pricier gas. After all, Idaho has no oil refineries and gets most of its gas from Utah refineries by pipeline or truck.

With transportation costs, "you'd expect additional expenses to gasoline," said Dave Carlson, spokesman for AAA Idaho.

However, "in an unusual set of circumstances, we've seen Utah's prices for most of this year higher than Idaho's," Carlson said.

Those circumstances are difficult to identify.

Carlson, whose office is based in Boise, said he would like to see the "rack rates" or wholesale prices that refineries, oil companies and middle men charge gas stations.

"Each day, the retailers have an option to buy a product," he said. "They're essentially told by the industry what the day's prices are. If we knew how much Salt Lake's prices were during select days in the past, and if we could do the same thing for Boise and other points … you'd have a better idea."

No state or federal laws require the oil industry to disclose information about prices and refinery production levels. The U.S. Department of Energy collects each state's information on production levels each week but does not winnow down the information by refinery. In Utah, there are five refineries. Oil companies prefer to keep such information private, they say, for competitive reasons.

"It's the obvious question," Carlson said. "We don't expect them to answer. And because there's no regulation to that effect in this part of the country, or pretty much anywhere, you can't ask those questions."

There is some discrepancy in gas prices in Idaho based on where the refined gas is coming from. Though the majority of the state gets its gas from Utah, the panhandle purchases from a pipeline terminal outside Spokane, Wash., that transports gas from Pacific Coast refineries, Carlson said.

In June, the Utah Petroleum Association told a legislative committee that the Pacific Coast refineries are larger than the Utah refineries and consumers enjoy cost reductions through economies of sale.

The Idaho market also has variations due to gas station ownership.

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