| Gas prices continue to rise - Per-gallon cost up 19 percent since beginning By: Mike Leiby, The Independent 02/06/2009 WHITE MOUNTAINS - Since the beginning of the year the average price for a gallon of gas has risen 19 percent. According to AAA Arizona, as of Jan. 29, the average price for a gallon of regular unleaded was $1.90 compared to $1.85 just a week before. When AAA released the news of a 19 percent increase in gasoline prices since Jan. 1, 2009, they also said that prices might continue to rise, and true to predictions, they did. A quick look at gasoline stations in the Show Low/Pinetop-Lakeside areas indicates that the average price of a gallon of gas in the White Mountains is now over $1.90 per gallon and even nearing the $2 mark. The question on most people's minds is why fuel prices keep rising as crude oil continues to trade in the mid $40 per-barrel range. "Despite the commodity trading between these price points, the cost of gasoline has increased based on the expectation that OPEC and U.S. refiners would be able to cut output to bring supply and demand into balance and reports that some in the energy sector are trying to prop up prices by parking oil tankers in harbors in an attempt to increase their retail margins," was the official explanation from AAA Arizona. Add to that the recent bankruptcy of Arizona's eastern region supplier, Flying J Inc. out of Ogden, Utah, and the ingredients for rising gasoline prices were all in place. AAA did have some quasi-good news for motorists. Linda Gorman, AAA media relations director, said that some of the slack in Arizona's supply has been picked up by the state's western supplier and that market factors and price trends are showing some signs that gasoline prices might soon level off. "The local supply issue that resulted in an upturn in Arizona fuel prices is beginning to improve," Gorman said. "With oil prices trading in the low to mid $40 per barrel range, continued downturn in demand and the market making the necessary adjustments to bring adequate supplies to the state, we should begin to see price stabilization occur over the next couple of weeks." As of Jan. 29, the cheapest gas in Arizona was still in Tucson at about $183 per gallon with the Flagstaff paying the highest price at approximately $1.99 per gallon for regular unleaded. The cheapest prices in the nation were in Wyoming where motorists were paying an average of $151 per gallon. The highest prices continue to be in California where the average cost of fuel was just over $2 per gallon. For more information on gasoline prices in Arizona and the nation, visit the AAA Web site at www.AAAA.com/news/fuelnews.htm . * Reach the reporter at mleiby@wmicentral.com |