Utah gasoline prices increase 3 cents per gallon since July

SALT LAKE CITY — The average price of a gallon of regular unleaded gasoline was up 3 cents Tuesday compared with AAA Utah's gas prices report on July 13.

Averaging $2.90, the cost of gas in Utah is now ninth-highest in the United States and 25 cents higher than a year ago.

The national average is $2.78. When factoring gas prices without taxes and fees, Utah has ranked among the top five states for the highest gas prices since June 26. And from March 24 to June 26, Utah had the highest price in the lower 48 states, said Rolayne Fairclough, spokeswoman for AAA Utah.

But a 3-cent increase from last month to this month isn't necessarily evidence that gas prices are on the rise. Consumer behavior and weather are sending mixed messages to the oil industry, Fairclough said.

The Federal Highway Administration has found that vehicle miles traveled are down from recent years, which is unusual because July and August are the months when people travel most. When fuel is in high demand, prices rise. People likely are traveling less because of economic uncertainty, Fairclough said.

Meteorologists are forecasting an active tropical storm and hurricane season this year. Because the Gulf of Mexico and states such as Texas are among the largest producers of domestic oil, storm predictions "influence how investors look at oil as a commodity to invest in," Fairclough said.

"These factors have helped keep the price for a barrel of oil around the $80 mark," she said.

However, a report last week from the Department of Energy contradicted the belief that oil and gasoline supplies are high. The report showed that gasoline demand hit 9.6 million barrels a day, the highest weekly figure of 2010 and the highest since August 2007.

"The DOE report defied many analysts' predictions, as crude oil supplies continue to rise amid the reported increase in demand," Fairclough said.

AAA Utah surveys a handful of communities across the state. Individual gas stations could have higher or lower prices. AAA's report is based on self-serve regular unleaded gasoline, without regard to octane level.

Logan, averaging $2.90 per gallon, and St. George, at $2.91 per gallon, had no increase in the past month. Provo ($2.86), Salt Lake City ($2.85) and Ogden ($2.84) all had increases in price. The average price of gasoline in Moab dropped by 7 cents to $2.92. In Vernal, it decreased by 2 cents to $2.92.

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