Gas prices on the rise – again

The following is a news release from AAA Idaho.

IDAHO FALLS — Well, that didn’t last long. According to AAA, the average price of gasoline both here in the Gem State and across the country is climbing. Tight supplies and growing fuel demand are the main reasons for the recent uptick.

Today, Idaho’s average price for regular is $4.42 per gallon, which is a penny more than a week ago, but 11 cents less than a month ago. Meanwhile, the national average currently sits at $3.80 per gallon, which is seven cents more than a week ago and about the same price as a month ago.

The Gem State currently ranks 8th in the U.S. for most expensive fuel behind California ($6.37), Nevada ($5.49), Oregon ($5.42), Alaska ($5.32), Washington ($5.29), Hawaii ($5.21), and Arizona ($4.49).

“At least six California refineries are in the middle of seasonal maintenance, and that, coupled with steady demand, has sent shockwaves across the West Coast, with prices jumping by 59 cents a gallon in California this past week, 43 cents in Oregon, and 38 cents in Washington,” says AAA Idaho public affairs director Matthew Conde. “Fortunately, prices are still dropping across the southern part of Idaho, but in the Panhandle, drivers are being hard-hit by the skyrocketing prices that Washington is facing.”

AAA says that for months, drivers in places like Coeur d’Alene and Lewiston were paying much less than in other parts of the state, but prices there have increased by 15 to 25 cents this week.

To offset surging prices, California has approved the early sale of winter-blend fuel, which is cheaper to produce. This may have an indirect effect on lowering prices in Oregon and Washington, and in turn, northern Idaho. But it is rumored that the Organization of the Petroleum Exporting Countries (OPEC) may announce more crude oil production cuts later this week.

If that happens, the price of crude oil, which makes up about half the cost of finished gasoline, is likely to increase, putting more upward pressure on fuel prices in the process.

The West Texas Intermediate benchmark for crude oil is currently trading near $83 per barrel, which is about $3 less than a month ago and $5 more than a year ago.

“With so much uncertainty in the market, now is a good time for holiday travelers to start saving to deal with the possibility of expensive fill-ups and pricey plane tickets at the end of the year,” Conde said. “Group your trips wherever possible and avoid driving in peak traffic congestion. While cold weather typically brings a dip in gas prices this time of year, the run-up to the holiday season may be more turbulent than we would like.”

Here’s a look at Idaho gas prices as of Oct. 3:

• Boise – $4.42
• Coeur d’Alene – $4.52
• Franklin – $4.22
• Idaho Falls – $4.29
• Lewiston – $4.49
• Pocatello – $4.37
• Rexburg – $4.37
• Twin Falls – $4.33