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SALT LAKE CITY -- If you've been out on the road this weekend -- you may have noticed it. Gasoline prices have taken a sharp rise.
Nationally they're up a quarter in the last month. In Utah, the increase has been even steeper.
Turmoil in the Middle East is driving prices higher. In the past month, we've seen the biggest jump in the last two years.
That's putting the squeeze on drivers, consumers and businesses like Free Wheeler pizza in Salt Lake City. Delivery driver Kate Cook's livelihood depends on tips and the cost of gas -- which she says is clearly going up.
"That's hard when the gas price changes overnight," she said.
Manager Don Murray says high fuel prices can hit every item -- toppings, cheese, sauce, dough, boxes.
"Our suppliers that charge us for delivery, I've noticed our fuel costs starting going up," he said. "The drivers comment on the prices going up as well."
U.S. gas prices are at $3.35 a gallon, up a quarter in the past month. Utah's average of $3.24 is lower, but up 41 cents since a month ago.
No question, the unrest in the Middle East has had a significant impact on the price of crude oil.
–Lee Peacock
"No question, the unrest in the Middle East has had a significant impact on the price of crude oil," said Lee Peacock, president of the Utah Petroleum Association.
Most of Utah's supply comes from the Western U.S. and Canada. Most Libyan oil goes to Europe and China.
So why is the U.S. feeling the pain?
"Bottom line is that it's one big world oil market. If the Chinese and Europeans who get Libyan oil lose that oil, they're going to come to the world markets and compete with us for the available supplies, and that's what's bidding the price up," said CNBC energy analyst John Kilduff.
Jet fuel is up 58 percent since the summer. Airline tickets are surging.
"For business travelers, (fuel is) a little over $130 round trip this year so far," said Rick Seaney, co-founder of FareCompare.com "For leisure travelers, close to $45 right now, going up to $60 pretty shortly."
At Free Wheeler, where customers get delivery for free, they say if fuel prices stay high, they may have to charge more per pie.
"If it stays up too long we'll have to do a price adjustment, unfortunately," said Murray.
Experts predict $4-a-gallon gas now seems likely. If Libya's oil production remains shut down, it could go higher -- just in time for the summer driving season.
E-mail: sdallof@ksl.com
