Gephardt: Utah Gas Prices Lag Behind National Average
Mar 27, 2020, 5:40 PM | Updated: 5:50 pm
SALT LAKE CITY, Utah — The price of crude oil is low, but many Utahns are asking: why aren’t our gas prices following suit?
Currently, crude oil is hanging just above $20 per barrel, as Russia and Saudi Arabia wage a trade war. Most Americans are already seeing much cheaper gas.
According to AAA Gas Prices, 26 states had an average below $2 per gallon on Friday.
Here in Utah, a gallon of gas cost an average of $2.38.
“Utahns are actually seeing this relief coming through,” said AAA spokesman Aldo Vasquez. “Utah’s average is about 28 cents cheaper than it was at the beginning of the year.
Vasquez said just in the last month, gas prices in Utah have dropped 17 cents. Though Utah ranked eighth in the country for the highest gas prices on Friday, Vasquez said that’s normal.
“The west typically has higher gas prices than the rest of the country,” Vasquez said. “One of the reasons is likely the very healthy gas supply in the region.”
One big reason prices at the pump remain above $2 per gallon has to do with the coronavirus pandemic.
“There isn’t enough demand to chip away at the supply right now,” said Vasquez.
Typically, prices start to ramp up at the end of March with spring break travel.
“We’re not seeing that this year, obviously, with Americans urged to stay at home and practice social distancing to slow the spread of the virus,” Vasquez said. “We’re seeing less people hitting the road, which will ultimately drive down the demand.”
We also spoke with Gas Buddy, who said the prices also have to do with population. Many states where prices average under $2 per gallon have higher populations than much of the west. Utah’s average considers more rural gas stations, which still have the more expensive gas in their inventory. Once those stocks are depleted, Utahns can see cheaper prices at the pump.
Vasquez said ultimately, it’s up to the gas station to decide what price it wants to charge.
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Additional Resources
If you see evidence of PRICE GOUGING, the Utah Attorney General’s Office wants you to report it. Common items in question include toilet paper, water, hand sanitizer, certain household cleaners, and even cold medicine and baby formula. Authorities are asking anyone who sees price gouging to report it to the Utah Division of Consumer Protection at 801-530-6601 or 800-721-7233. The division can also be reached by email at consumerprotection@utah.gov.
