Gas Prices Falling Statewide

None by Eric Ray

Expert Says Trend Should Continue

(KCPW News) Gas prices in Utah are falling because of simple supply and demand according to John P. Hill, Executive Director of the Utah Petroleum Marketers and Retailers Association. He says the summer maintenance that caused refineries to raise prices earlier in the year is complete. There is now a greater supply, which leads to lower prices.

Hill expects prices will eventually fall below $3.00 per gallon across the state, not just because of greater supply, but also because of competition amongst retailers. He says grocery chains drive the market prices because they can offer volume discounts. This means small retailers must follow or lose their market share.

It's unlikely gas prices will go up for the Fourth of July. Because the holiday falls in the middle of the week, Hill says the increase you often see for a holiday has already taken place.

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