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Deanie Wimmer Reporting A state investigation into why Utah's gasoline prices are so high got underway today, and even the investigators are shaking their heads. Utah drivers aren't the only ones wondering what's going on?
The governor's team called in a room full of experts to get to the bottom of it. Higher prices at the pumps actually hurt retailers because people buy less of everything, one expert told state investigators.
John Hill, Utah Petroleum Marketers and Retailers: "The local retailer is making a few pennies a gallon to pay for all their overhead costs and they suffer when the price of gas goes up."
Another said Utah's strong economy is to blame because demand for fuel has stayed high.
Lee Peacock, Utah Petroleum Assoc.: "The demand has remained constant. It hasn't leveled off, it hasn't dropped dramatically. Besides the price of crude oil, which is set internationally, the other factors that affect the price of gasoline really are local factors, supply and demand."
People at the pumps aren't too sure about those arguments.
Richard Daynes: "I think that's a pretty lame argument. I think it's a good excuse for people to jack the prices up."
Peter Wolf Gramm: "We used to be the lowest in the country, now we're the highest. I wish we'd get it back to where it used to be."
A Utah economist says supply and demand alone doesn't explain high prices.
Jeff Thredgold, Zions Bank: "Producers, retailers, wholesalers, are probably due a little bit of criticism right now because they've been a little slow in bringing prices down."
Thredgold and Petroleum experts do agree that while the rest of the nation sees large fluctuations in gas prices, Utah's are more steady and lag behind. So, many told investigators Utah's prices will eventually follow suit.
With wholesale and oil prices dropping, investigators hope prices drop sooner than later.
Francine Giani, Utah Dept. of Commerce: "It's our position, based on what we heard today, that those numbers are there and clearly the consumers ought to be seeing those changes."
State investigators say from here they'll request more information before they can report back to the governor.
