Gypsy Cottam pumps gasoline at the same time as costs rose to greater than $5 a gallon at a Chevron in Salt Lake Metropolis on Thursday, June 9, 2022. Kristin Murphy, Deseret Information
Utah gasoline costs hit a brand new excessive on Thursday, with the typical worth for a gallon of normal topping $5 for the primary time ever, in accordance information from AAA.
Nationwide averages proceed to set new information as nicely, with a mean worth per gallon of $4.97. Utah’s common worth of $5.005 per gallon is up greater than 50 cents from the typical a month in the past and practically $1.63 from the worth on the similar time final yr.
California boasts the very best gasoline costs within the nation. Its common of $6.40 per gallon is greater than 80 cents greater than the following closest state — Nevada — at $5.59. Georgia has the bottom costs, at $4.41 per gallon.
Why is gasoline so costly? The value of crude oil stays excessive — with Brent crude closing at $123.58 a barrel on Wednesday, per MarketWatch. Though the USA doesn’t import a lot oil from Russia, the invasion of Ukraine and subsequent sanctions by European nations have performed a task in driving up greater international oil costs.
For each $10 improve in the fee for a barrel of crude, gasoline costs rise practically 25 cents, in response to CNET.
Oil costs aren’t the one driver of ache on the pump. Because the summer season journey season ramps up, demand for gasoline helps push costs greater, and there doesn’t appear to be an apparent finish in sight.
Tom Kloza, international head of vitality evaluation for the Oil Value Data Service, which tracks gasoline costs for AAA, advised CNN the nationwide common for gasoline might method $6 by the top of the summer season, as vacationers take long-anticipated journeys.
“Something goes from June 20 to Labor Day,” Kloza stated. “Come hell or excessive gasoline costs, individuals are going to take holidays.”
As Deseret Information reported final week, some analysts consider gasoline costs are reaching the purpose of altering journey plans or forcing shoppers to chop again on different areas of spending. Whereas that is still to be seen, such decreases in spending might spell bother for the economic system as a complete, in response to CNN, which studies that additional cutbacks might tip the economic system into recession.
The place are gasoline costs highest? Fuel costs in Utah aren’t degree throughout the state, with variations county by county. Costs alongside the Wasatch Entrance are pretty just like each other, with variations of just one cent per gallon throughout the three main metropolitan areas: Salt Lake Metropolis, $4.99; Ogden, $4.99; Provo-Orem, $4.98.
Piute County has the very best costs within the state — $5.31 per gallon — whereas Sanpete County has the most cost effective at $4.91 per gallon.
Right here’s how the remainder of Utah stacks up, by county retail worth per common gallon:
- $4.910 to $4.966: Daggett, Uintah, Emery, Sanpete, Sevier.
- $4.967 to $4.989: Field Elder, Weber, Davis, Utah, Juab, Duchesne.
- $4.990 to $5.009: Cache, Salt Lake, Wasatch, Carbon, Wayne, San Juan.
- $5.010 to $5.120: Tooele, Morgan, Summit, Millard, Grand, Iron.
- $5.121 to $5.309: Wealthy, Beaver, Piute, Garfield, Kane, Washington.