While this is the time of year typically noteworthy for winter doldrums and the lowest gas prices on the calendar, pump prices have instead been mostly moving the other direction and particularly so in Utah.
The average price for a gallon of regular across Utah clocked in at $3.67 on Monday, up 26 cents from a week ago and 41 cents a gallon from the same time last month, according to AAA data.
Utah’s average gas price is well over the national average, which AAA pegged at $3.47 on Monday and is among the highest in the country. National average gas prices are down slightly from last week but up 18 cents a gallon from a month ago.
While current Utah gas prices are down dramatically from the state’s all-time high of $5.26 per gallon of regular reached last July, the recent upticks are running counter to the usual seasonal price fluctuations and, according to industry experts, supply side problems are skewing the market.
The unexpected recent price hikes have even drawn Utah Gov. Spencer Cox into the mix.
Cox issued a statement Monday bemoaning the price escalations and noting that some local and regional refineries have been offline, circumstances exacerbating wider petroleum supply issues in the Mountain West.
“Over the last week, Utahns have seen gasoline prices increase again,” Cox said. “Prices were just beginning to normalize when a Utah refinery closed for annual maintenance, which is taking longer than expected. A Colorado refinery also shut down in December due to malfunctioning equipment, which has placed additional strain on supply in the Rocky Mountain region. It is expected to be online in March.”
The Colorado facility mentioned by Cox, the Suncor refinery outside Denver, has been out of commission since late last year after freezing temperatures disrupted output. When the refinery tried to restart after addressing its weather-related issues, it suffered a fire and equipment got damaged, per CNN. The Suncor facility is Colorado’s sole refinery but it’s a sizable operation, accounting for some 17% of the Rocky Mountain region’s refining capacity.
Cox noted the increase in gasoline prices is happening on top of upticks in the price of natural gas and could be creating affordability issues for residents of the state, and particularly so for lower income Utahns.
“Unfortunately, this comes on top of an increase in natural gas prices, and we’re very concerned about those struggling to make ends meet,” Cox said. “Energy costs affect us all but disproportionately impact those with lower incomes and larger families.”
Beside domestic supply issues, wholesale petroleum prices have been creeping up and some industry experts speculate the usual seasonal price jumps that accompany the start of the vacation season in late May could arrive early this year.
Patrick De Haan, head of petroleum analysis at GasBuddy, said he’s worried the typical springtime jump in prices will be pulled forward.
“Instead of $4 a gallon happening in May, it could happen as early as March,” De Haan told CNN. “There is more upside risk than downside risk.”
In the meantime, Cox said he has shared his concerns with local refiners.
“We’ve met with the refinery and public utility providers to ensure they are doing all they can to actively seek out low-cost production and keep costs low,” Cox said. “We appreciate the efforts of our energy partners as we work together to ensure adequate supplies to keep energy available and affordable.”