Utah Loses Low Gas Prices Ranking

Utah is no longer in the bottom five. When it comes to low gas prices, Utah has been among the five cheapest states in the nation since January. Utah’s state average has now jumped to twelfth lowest in the United States. According to the latest report from AAA Insurance, which tracks fuel costs as a service to consumers, about half of the metro areas in the state tracked by AAA saw no change in their average pump prices over the last month.

Utah’s current average price for a gallon of regular gasoline is $3.70, which is a decrease of one cent since last month’s AAA report on April 10. Today’s price is four cents lower than a year ago. Of the Utah cities surveyed by AAA, Salt Lake City had the highest average price at $3.84 per gallon. Ogden and St. George tied for the lowest average price at $3.66 per gallon.

The national average price of $3.76 is down by 16 cents, which is 21 cents less than the national price on this date last year, when it was $3.97.

“Global economic concerns have helped to pressure oil prices lower,” said AAA Insurance spokesperson Matt Skryja. “Investors buying behavior continues to have the largest impact on prices. They are looking for real or perceived impacts to supply and demand, so debt issues in Greece and France have been a concern, as a depressed economy can mean decreased demand for oil and gas.”

Bearish manufacturing and jobs data from the euro zone has also increased investors’ concerns of global economic weakness. This perception recently outweighed signs of economic recovery in the U.S. and China. Weaker economies overseas would be expected to consume less crude oil, which puts downward pressure on prices. Furthermore, as economies overseas weaken relative to the U.S., the value of the dollar would be expected to strengthen. As this happens, crude oil futures, which are priced in U.S. dollars, become relatively more expensive and thus typically a less attractive investment. This puts additional downward pressure on prices. The dropping price of oil futures accelerated on comments by the Organization of the Petroleum Exporting Countries (OPEC) Secretary General that its member countries would keep production high in an effort to depress global oil prices to a “fair” price of around $100 per barrel.

Wailuku, Hawaii, holds the dubious crown for the highest average price in the nation, at $4.89 per gallon. The highest price reported by AAA in the lower 48 states is in Eureka, California, where the average price is $4.45.

Among all 50 states, Hawaii has the highest state average price for regular, unleaded gasoline at $4.55. Among the lower 48 states, the highest average state price reported by AAA was achieved by California, with an average price of $4.21. Hawaii, Alaska, California, Washington, Connecticut, New York, and Oregon all have averages above four dollars per gallon. Alaska has the second highest state average price at $4.36.

One way consumers can reduce the amount of money they spend on fuel is to shop aggressively for the lowest price. AAA now offers text alerts via mobile phone for low gas prices in your area. Sign up today at http://www.aaa.com/gas">www.aaa.com/gas.

To get the best mileage possible and stretch your gasoline dollar, AAA recommends keeping your vehicle’s tires at the proper pressure, performing routine maintenance, and making sure fluids are clean and belts and hoses are in good repair. The way you drive can also impact a vehicle’s fuel economy. Smooth driving to avoid sudden stops and starts, planning errands and lightening your load also help conserve gasoline. More gas saving tips are available at http://www.aaa.com/gas">www.aaa.com/gas.

AAA’s Fuel Gauge Report is the most comprehensive retail gasoline survey available, with over 100,000 self-serve stations surveyed every day, nationwide. Data is provided in cooperation with OPIS Energy Group and Wright Express LLC.

The AAA Northern California, Nevada and Utah Insurance Exchange offers automobile, homeowners and other personal lines of insurance to AAA members through partnerships with AAA clubs. It is one of the largest personal lines insurance companies in the United States and is rated A+ by A.M. Best. 

(5.8.12)