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Team CoverageGov. Jon Huntsman today asked two state agencies to closely monitor gasoline prices to make sure Utahns are not being taken advantage of.
Huntsman asked the departments of commerce and agriculture to report any suspicious practices to the attorney general's office. And tonight we took a stack of e-mails from our viewers to the governor, to try to find an answer as to why we are paying much more than the rest of the country.
The problem is Utah has the third highest gas prices of all the 50 states, at an average of $4.10 flat a gallon. Even California now has cheaper gas than Utah, and only Alaska and Hawaii's prices are higher. AAA says overnight California's average slipped just below $4.10, to $4.098.
AAA of Utah spokeswoman Rolayne Fairclough says this did happen a couple of years back. "We, again, had the highest prices in the lower 48. You know, it's not unique, but it's very disturbing to say the least," she said.
The bottom line is prices here just are not going down very quickly, especially compared to the rest of the country. The national average is down 33 cents from its all-time high in July, but Utah has dropped only 12 cents in that time.
The KSL newsroom mailbox gets more e-mail messages about high gas prices than anything else.
One viewer writes, "Why is Utah putting up with this?" Another asks, "Is there price fixing or collusion?" And, "What is it with Utah gas prices? We have oil refineries in our own backyard."
Governor Huntsman said, "Government doesn't control those refineries. Government doesn't control those distribution networks, but government can provide an oversight role."
The governor reports Utah's prices are 7 percent higher than the national average. With prices at historic highs, it means 27 cents more per gallon. But percentage-wise, prices now are actually lower than price discrepancies in the past.
"It was higher in 2006. It was about 15 percent," the governor said. "It was higher in 2001. We were dealing with a base, a nominal value that was less than it is today, so you didn't feel it, it wasn't 27 cents worth of pain."
While Utah's prices are slow to drop, the governor points out that Utah's prices didn't rise as fast as other states when prices skyrocketed in the spring. He expects Utah prices will catch up to the national average soon.
"As the rest of the nation continues to move down precipitously in terms of pricing, we are going to look for the same thing to happen here, and it should," he said.
The governor believes Utahns can help accelerate the free market principle to lower prices at the pump. "People can vote with their steering wheel. You can always look for the cheapest vendor," he said.
This comes as a petroleum industry survey shows 78 percent of Utah voters support increased drilling.
The gas prices may be what's causing drivers across the nation to cut back.
In June, we racked up 518 million miles on the roads, or more than 5 percent less than in June of 2007. In May, the miles driven were more than 3 percent off. The downward trend, on a national level, goes all the way back to November.
Unfortunately, the U.S. Department of Transportation now is worried about road construction funds. Fewer miles driven means less gas purchased, which means less gas taxes collected.
E-mail: aadams@ksl.com
E-mail: athomas@ksl.com
E-mail: spenrod@ksl.com
