Experts expect gas prices to fall further

Utahns watched gas prices trickle down by 2 cents last week to slowly combat a 14-cent increase since June — a drop that experts believe will continue.

The average cost for a gallon of regular, self-serve gasoline is staying at $2.65, AAA Utah said Tuesday. That is still significantly lower than a year ago, when Utahns saw the highest price for gasoline ever.

"Demand for gasoline continues to be very weak, and there are extremely robust supplies of oil in the market," Rolayne Fairclough, AAA Utah spokeswoman, said in a prepared statement. "The upswing in oil prices in spring and early summer were a result, in part, of trading in the commodities market and hopes for an economic turnaround."

Surveys of several Utah cities reported double-digit month-over-month increases, with the highest in Moab reaching a 27-cent hike, with an average $2.78 for gas.

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 gas without regard to octane level.

The national average — $2.52 per gallon — is decreasing as well. It's 10 cents lower than last month's report and 8 cents lower than a week ago. The current national price is $1.59 lower than last year, and the price of gas in Hawaii — the nation's highest at $3.26 — is still lower than the more than $4 per gallon costs that persuaded drivers to find alternate or public transportation.

Despite those decreases, prices over the past month have wavered in surrounding states, including increases by 10 cents and 12 cents in Montana and Idaho, respectively.

Fairclough said "recent economic and unemployment reports of slow recovery" helped knock oil prices down to current levels.

"Given the market forces currently at work, it's unlikely consumers will see dramatic gasoline price swings any time soon," she said.

Even with slow drops in gas prices, AAA recommends that people watching their travel budgets maintain tires at proper pressure and have vehicles checked regularly. Utahns looking for the best gas prices in the state can visit AAA's gas price finder at www.aaa.com/gasprices.

e-mail: lgroves@desnews.com