Despite surplus, gas prices still on the rise

VIDEO LINK : http://www.good4utah.com/story/d/story/despite-strong-supplies-gas-prices-are-on-the-rise/23336/tIV9JWWDo0ugFy21mUZ1wQ 

Story-4SALT LAKE CITY (ABC 4 Utah) – It’s an all too common trend this time of year. As we begin to hit those summer months, the numbers at the pump keep rolling on up.

Even with U.S. oil production hitting record levels and global supplies holding strong, why do we continue to see the prices going up?

Several factors contribute to the increase from where we are located in the region to how we get our oil to the gas station.

“The inter-mountain west is considered a separate market from the rest of the country because we’re so isolated in the middle of the country, we don’t have the incredible networks of pipelines we see in the east or the midwest,” said Rolayne Fairclough, Spokesperson for AAA.

Most of the oil in Utah is transported via trucks which keeps transportation costs higher, not unlike the waterways that other regions of the country have which provide easier transport.

Even so, consumers at not happy.

“I think it’s ridiculous,” said Chris Christin.

The national average sits at $2.45. And this could be reflected on the fact that refineries begin to go through maintenance, which limits fuel production. Also, because of the change from winter grade gasoline to the more expensive summer grade gasoline.

Utah’s average sits $2.28, and all Utah cities surveyed reported a double digit increase this past month. The smallest increase was $0.23 cents in Vernal, the greatest was $0.40 reported by Logan and Salt Lake City.

However, the increase in gas prices is not reflective of the proposed state and federal tax increase, as those have yet to go into effect. Meanwhile, consumers like Chris, will continue to push through.

“I’m gonna keep driving, keep going to work, keep running errands and paying for the gas.”

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