Local supply-and-demand problems combined with reformulated fuel requirements pushed Utah gasoline prices up 8 cents in August to $1.48 for a gallon of regular, unleaded gasoline, according to the American Automobile Association of Utah.
However, the month-over-month spike is not expected to hold as summer demand falls, said Rolayne Fairclough, AAA spokeswoman.
In addition, cleaner reformulated fuels mandated during summer months expire on Oct. 1.
Fairclough expects that local refiners will begin to phase out their reformulated supplies by the end of August, possibly easing prices.
"Across the country prices remained relatively stable. Even in California prices went down, but in the Intermountain West we had these big spikes," Fairclough said. She added that Utah receives roughly 80 percent of its crude oil from Wyoming and Canada and suggests that August price increases resulted from refinery problems and routine maintenance shutdowns.
Nationwide the price of gasoline rose 1 cent to $1.41, month-over-month.
"Fall and spring are the times when we get our lowest prices typically because it is after the driving season and before the heating season," she said.
According to Tim Gill, an economist with the American Petroleum Institute trade association in Washington, D.C., half of the cost of a gallon of gasoline is attributed to crude oil prices.
"The crude oil price is set in a global market and in a commodity market. It is very volatile, and that does feed its way through to gasoline prices," Gill said.
According to Gill, crude prices have steadily risen from last November when the price hovered at $17.45 a barrel to today's nearly $28 a barrel.
On Monday, West Texas Intermediate crude oil prices for September delivery closed up $1 at $27.86 per barrel. West Texas Intermediate, a high quality crude oil, is a benchmark price other oils are priced against.
"The trend over the last eight or nine months has been upward, and that largely has been due to economic recovery pushing demand up and driving prices up," Gill said.
AAA Utah surveys a limited number of communities across the state in its monthly gas survey. Individual service stations sell gas at both higher and lower prices, sometimes even in the same city block.
Across Utah, Moab showed the highest priced gasoline at $1.58 per gallon. St. George followed at $1.53, up 14 cents over July. Vernal averaged a 9-cent increase, at $1.50. Provo's average price was $1.47, 19 cents higher than last month. Ogden's prices stood at $1.45, and Salt Lake pumps showed the lowest average price at $1.44, a 5-cent increase.
According to Gill, profit margins at the retail level run very thin, only 1 or 2 cents per gallon.
Crude oil costs are the biggest component shaping the price of a gallon of gasoline, followed by state and federal taxes. Utah's state excise tax is higher than the national average. The actual refiner marketer margin is the smallest component of the price, Gill said.
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