Grumbling about price is a perennial gas pump activity, but right now Idahoans really do have something to complain about. Idaho’s average gas price is at $3.62 per gallon. That’s 27 cents higher than the national average. Idaho's prices are also higher than they were this time last year, while most of the country has gone the opposite direction. Why the difference?
Dave Carlson of AAA Idaho says the high price in the state is coming from the supply side. Most of the Idaho's gas comes from refineries in Utah. Carlson says those Utah refineries aren't sending enough gas to Idaho to push prices down. He says AAA has concerns about the refineries' ability to keep up with demand.
“Production numbers were down in June and July at the time when demand was the highest,” Carlson says. “Perhaps there’s nothing untoward about that but it does raise questions.”
Carlson says they don’t know if the refineries are in good enough shape to meet demand long term because there’s not much transparency required in the region’s gas marketplace. But higher than average prices are not the only noteworthy thing at Idaho pumps right now.
“I don’t recall, in my many years with AAA, prices this broadly stretched across the state,” Carlson says. “Here’s Idaho Falls with gasoline prices at $3.35, Coeur d’Alene is at $3.38, Boise has got an average price of $3.77 a gallon. So we’ve got 50 cent differentials going on in the state.”
Carlson says they don’t know why there’s suddenly so much difference in prices in different parts of the state. The exception is Idaho Falls. Two big gas stations there got in a fight and are trying to undercut each other’s prices; the rest of the city has followed suit.
Copyright 2013 Boise State Public Radio