Early sign of spring: Blooming gas prices

With Cd'A gas prices among the highest in state, Idahoans are paying less at the pump than most Americans.

Idaho's a winner for the moment in what has morphed into a rite of spring – the run-up in and oil and gas prices – but there are some new, unexpected factors at play this year, reports AAA Idaho.

U.S. demand for oil and refined products has been 5-7 percent lower this year and supplies are good, yet prices are up, suggesting that there's either a fear that oil supplies could be disrupted in the Middle East or investors are banking on good growth gains in economies around the world.

The rush of investment dollars has helped push oil prices well above last year's numbers, and today's national average price for regular grade gasoline is $3.65, a full 42 cents more per gallon ahead of last year's record pace. Idaho's average price is on the rise too, up 8 cents in the past week to $3.23, but 42 cents lower than the average price. Idaho's average price is fifth lowest in the U.S.

"Oil is collecting a premium price, but all you have to do is look at where Idaho is compared to its neighbors to see something is drastically different this year in the regional scheme of things," said AAA Idaho spokesman, Dave Carlson.

Oregon's average price today $3.83 and Washington is at $3.78. But Wyoming, $3.08; Utah, $3.16 and Montana, $3.20 all have prices in the range of Idaho's $3.23 average.

So what's driving the regional disparities? The answer hinges on the regional oil acquisition costs. Refineries on the West Coast are likely paying more than $125 a barrel for the oil they use, but Idaho and other Rocky Mountain states have access to cheaper oil coming out of Canada and North Dakota, priced closer to $80 a barrel.

"The rapid escalation in oil prices in the past several weeks has yet to be accounted for at the retail level, so prices everywhere will continue to rise," Carlson said. But regional disparities, refinery switchovers to more expensive summer grade fuel and system glitches like the fire at a Washington state refinery last week

will have major influences on gas prices.

Barring major market changes, gas prices are expected to rise between now and mid May. Idaho's prices peaked at $3.79 the first week in May a year ago.

"We think it's reasonable to assume that some states will hit average prices well above $4, but barring refinery shutdowns it's possible Idaho and some states might stay below that mark," Carlson said.

Here's how pump prices compare among a sample of Idaho cities today: Boise, $3.23; Coeur d'Alene, $3.28, Pocatello, $3.08; Idaho Falls, $3.07; Nampa, $3.24; Twin Falls, $3.23.

Source: AAA Idaho