Gas prices on the rise
Utah motorists will begin to see gasoline prices increase as OPEC efforts to decrease supply begin to take hold, according to a Triple-A news release.
“The barrel price is now stabilizing between $20 to $21,” said Rolayne Fairclough, AAA Utah spokesperson.
Energy analyst Alan Kovski said, “We are beginning to see gas prices, after having reached amazingly, and unexpected low levels, come back up. It is quite possible that during the lowest points of the gas-price decline retailers were selling at a loss as they battled for market share.”
Joe Pierson, manager for the Amoco Aggie Station in Logan, said, “Right now cost is on the rise and retail is on the decline, but the retail lately has been going down.”
The national price per gallon of regular, unleaded gasoline is $1.13. This is a 3-cent increase from last month’s price of $1.10. The national price was $1.48 a year ago, according to the AAA news release.
Utah AAA reports the current price in Utah is $1.14. This represents a 3-cent decrease from last month’s price and a 28-cent drop from a year ago.
According to the AAA news report, there has not been a worldwide oil-supply shortage in connection with the terrorist attacks or the ongoing military operations.
The demand worldwide has significantly slowed following Sept. 11 due to a worsening economic condition and to the sharply-reduced demand for commercial jet fuel. The world oil supply in 2001 was essentially unchanged.
In 2002, it is expected to decline by about 450,000 barrels per day. OPEC supply is forecast to fall by 1.5 million barrels per day but non-OPEC supply is expected to increase by 1 million barrels per day.
“[In Logan] Smith’s sets the price, for the most part. They move first and then most everyone takes from that. It used to be the Chevron on fourth North but ever since Smith’s came in they kind of set the price and we all kind of follow from that,” Pierson said.
Rachael Bonitz, a freshman physics major, said, “It is harder for students to handle the rising gas prices when you have a limited income. I wish the people in the Middle East would figure out what is going on so we could have a steady gasoline rate.”
AAA reports that the Intermountain Western States have also seen an increase in prices. Their current prices are: Colorado, $1.16, a 6-cent increase; Arizona, $1.14, the same as a month ago; Nevada, $1.23, a 3-cent increase; and Montana, $1.18, a 5-cent increase.