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BOISE, Idaho (AP) -- The reason a gallon of gas in Idaho has been at least 20 cents higher than the national average for most of the spring is because refineries in Utah aren't producing enough to meet demand in the two states, the spokesman for AAA Idaho says.
"Utah legislators should be asking refineries if they are producing enough gasoline to meet the needs of Idaho and Utah," Dave Carlson told the Idaho Statesman.
AAA reports that the national average for a gallon of regular gasoline on Friday cost $2.749. The cost in Idaho is $3.023, and in Utah $3.055.
Utah legislators should be asking refineries if they are producing enough gasoline to meet the needs of Idaho and Utah.
–Dave Carlson
Carlson said Idaho is an isolated market and that's part of the reason for the higher prices.
Charley Jones, president of Stinker Stations, said retailers aren't keeping prices artificially high.
"It's an open and transparent market," he said. "There is no conspiracy or anything illegal going on."
He said retailers do better when gasoline prices are low.
"In general, when prices are higher, profit margins are hurt," he said.
He said Idaho's isolation creates a risk for refineries sending gas to the state because if retailers can't sell it, there's no way to ship it out.
Most of Idaho's gas comes from Utah and Wyoming, though prices are also influenced by the world oil market.
"There is plenty of crude oil in the world," Jones said. "The problem is that India, China and America all have good money and are willing to pay for it."
Jones predicts gas prices will fall in the next 30 days in Idaho and the rest of the nation.
"Gas prices have peaked for this driving season," he said. "Over the summer, Idaho's gas prices will move toward the national average."
He based that prediction on the financial problems in Europe and Greece, which he said will cause foreign investors to cut back on buying oil.
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Information from: Idaho Statesman
(Copyright 2010 by The Associated Press. All Rights Reserved.)
