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John Daley ReportingWho is to blame for Utah's higher-that-the-national-average gas prices? Some people have pointed the finger at retailers, but they say, "Not so fast."
Gas prices in Utah are under continuing scrutiny because they're among the highest in the nation. State regulators and others are now focusing on retailers, but those retailers believe strongly the blame is misplaced.
I spoke with the owners of one family-owned convenience store today; they say mostly the prices are out of their control, set by the big boys higher up the food chain.
Excuse the owners of this South Salt Lake convenience store if they get a little irked when people say retailers like them are to blame for Utah's relatively high gas prices.
Lisa Wilson, Owner, Miniature Market: "We just want people to know that we're not the ones making all the money."
Mike Wilson, Owner, Miniature Market: "So they need to look to somebody else instead of just the retailer on who is controlling the gas prices."
They say for every gallon they pay nearly 43 cents in taxes and another 6 to 8 cents for processing credit card charges, plus the refineries set the price for their deliveries and retailers can't lower their prices until they've sold what's currently in their storage tanks.
Under their pumps the Wilsons have a 30-thousand gallon storage tank. They say it takes five to seven days to sell the gas from that tank. So when wholesale gas prices are changing, there's some lag time for the numbers to change at the retailer.
Mike Wilson, Convenience Store Owne: "Basically the refineries have dropped their retail faster than we can drop our retail, because of existing inventory."
According to the National Association of Convenience Stores, nationwide the average gross margin, or profit, per gallon was about 16 cents a gallon in 2005.
The head of the Utah Petroleum Association says it's a complex equation to determine prices.
Lee Peacock, Utah Petroleum Association: "Well there's a lot of factors going on. But the most important thing to remember is that prices are trending downward."
Still, some have suggested a boycott of retailers, which draws this reaction...
Lisa Wilson, Owner, Miniature Market: "You don't know what you're talking about iff you're telling them to boycott the gas stations because you're not looking into what the gas prices and our taxes are."
Another problem, according to the Wilsons, is drive offs. They say last year they $4,000 due to people driving off without paying, another factor that drives prices higher.
According to FuelGaugeReport.com the most expensive gasoline is in Hawaii, as you might expect. The cheapest is in Missouri. The average price for regular, unleaded gas in Missouri is $2.07.
Oklahoma and Ohio are the next cheapest, tying at $2.11. Kentuckians are paying $2.13 a gallon.
On the other end of the scale, drivers in Hawaii are paying $3.12 for a gallon of regular unleaded, followed by Alaska at $2.92.
Then Utah-- we have the third highest pump price in the nation at $2.78 a gallon. Idaho is fourth most expensive at $2.75 a gallon.
