Gas prices surge to highest level in nearly three years

Gasoline prices — a major expense for many Utah businesses — reached a level above $3 last week. That’s the highest price in nearly three years.

AAA Utah reported that the average price of a gallon of unleaded, regular gasoline went above $3 last Monday, the highest since July 2015 and up from $2.39 on Jan. 1 of this year.

At mid-week last week, Utah’s average was $3.04, compared with a national average of $2.76. A year ago, Utah’s average was $2.48.{mprestriction ids="1,3"}

“Gas prices in Utah have jumped more than 60 cents since the beginning of 2018, and there’s no sign they’ll be decreasing as we enter the busy summer travel season,” said Michael Blasky, spokesman for AAA Utah. “These price increases are being driven by record demand for gasoline, the highest oil prices in four years and traditional spring season price increases.”

Much of the Utah price spike has occurred in the past month. For example, on March 13, the average in Salt Lake City metro region was $2.32. Last Monday, it was $2.98 and had climbed to $3.01 on Wednesday.

AAA’s Fuel Gauge Report last Wednesday had a price of $3.04 in Logan, up from $2.55 a month earlier; Ogden, $3.03, up from $2.51; Provo-Orem, $2.99, up from $2.47; and St. George, $3.10, up from $2.66. AAA noted that gasoline in Piute County was averaging $3.30 per gallon.

AAA attributed the higher prices to three factors. One is that travel demand in April was the highest level ever recorded for the month. The Energy Information Administration’s latest data registers consumer gasoline demand at 9.857 million barrels per day.

“That exceeds typical summer demand, and we’re still in spring,” Blasky said.

Another factor is that the price of oil has jumped since 2017, driving up gasoline costs. Last year at this time, oil was trading at under $50 per barrel. Now it’s nearly $70.

Lastly were local refinery issues. HollyFrontier’s Woods Cross refinery experienced a fire in March, reportedly causing lower rates of production, AAA said.

AAA’s Fuel Gauge Report surveys more than 100,000 self-service stations every day nationally. Data is provided in cooperation with OPIS Energy Group and Wright Express LLC.{/mprestriction}