Monday, June 1, 2020

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    Killing of Iranian general could impact gas prices

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    Doug McMurdo
    Doug McMurdo
    Editor Doug McMurdo reports on news out of the Moab City Center, tourism, courts, change of government and more.
    fuel prices
    Public domain photo by U.S. Census Bureau via Wikipedia

    Utah gas prices have fallen 4.8 cents per gallon in the past week, averaging $2.70 per gallon Monday, according to GasBuddy’s daily survey of 1,171 stations. Gas prices in Utah are 18.3 cents per gallon lower than a month ago and 3 cents per gallon higher than a year ago.

    According to GasBuddy price reports, the cheapest station in Utah was priced at $2.18 per gallon Jan. 6 while the most expensive was $3.37 per gallon, a difference of $1.19 per gallon. The cheapest price in the entire country Monday stood at $1.89 per gallon while the most expensive was $4.99 per gallon, a difference of $3.10 per gallon.

    The national average price of gasoline has fallen 2.2 cents per gallon in the last week, averaging $2.57 per gallon Monday. The national average was down 2.4 cents per gallon from a month ago and stands 34.3 cents per gallon higher than a year ago.

    “To start the first week of a new decade, the national average has seen little change, but with the U.S. targeting an Iranian general in a drone attack last week, there is a distinct possibility that escalations in tensions may have an effect on gas prices moving forward,” said Patrick DeHaan, head of petroleum analysis for GasBuddy. “For now, there’s been no physical disruption or retribution from Iran, but it has been promised.

    “Oil markets have risen on the rising risk of Iran retaliating,” he continued, “but until it happens, don’t expect gas prices to see much of a jump. For now, I could see a small 5 to 10 cent per-gallon increase over the next couple of weeks, but the real potential for fireworks at the pump will be contingent on retaliation, and whether that retaliation targets oil infrastructure like Iran struck last year. For now we’re in limbo, but typically gas prices decline slightly in January and February thanks to seasonally weak gasoline demand.”

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