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Update: June 23, 2000
Gas prices appear to be coming down in the midwest.
Some Chicago-area gas stations have dropped their price by 12 cents a gallon since yesterday.
Petroleum officials say it has nothing to do with pressure from the government, or lower OPEC prices. They say increased supplies led to the drop.
It's the first drop since prices started zooming up a few weeks ago.
Gas was selling for more than $2 a gallon in many midwest cities.
June 22, 2000
Soaring gas prices in the Midwest have officials in Washington investigating whether the hike could be blamed on price gouging.
Gas prices in Utah are well below those in the Midwest, but if you suspect that prices edge up just about the time of year that you drive a lot more, you're right.
News Specialist John Daley has been investigating trends in gas prices and has this report.
AAA automotive club tracks the average price of gas in Utah each month.
We crunched the numbers and found that gas prices in Utah are indeed higher during the busiest driving months--in the summer--than the rest of the year.
Do you have the vague suspicion that every summer, just when you start driving more, the gas prices start creeping upwards?
David Eaton/Motorist: "OF COURSE THEY'RE HIGHER, THEY'RE HIGHER THAN THEY WERE LAST SUMMER FOR SURE."
Dave Pratt/Motorist: "THEY'RE EXTREMELY HIGH."
And statistically, in Utah gas prices are in fact higher in the summer.
During the years '97,'98 and '99 the average price in Utah surged slightly higher during the well-traveled summer months.
Eyewitness News compared the average price during the months May through September with the rest of the year.
Here's what we found:
- May-Sept.
$1.24
- Rest of year
$1.19
That represents a 5 cent increase--meaning gas in Utah is priced roughly 4% higher in the summer.
Rolayne Fairclough/AAA Utah: "TRADITIONALLY WE ALWAYS HAVE THE PRICE GOING UP IN SUMMER MONTHS BECAUSE WE HAVE A STRONG DEMAND BECAUSE OF SUMMER DRIVING."
The oil industry blames summertime gas hikes--as well as high prices in the midwest--on a complicated mix of factors: Higher crude oil prices, low supply and high demand.
This week, the industry denied allegations of price gouging.
Red Cavaney/American Petroleum Institute: "THE CLAIMS THAT ANTI-COMPETITIVE BEHAVIOR HAS CONTRIBUTED TO THE RECENT GASOLINE PRICE INCREASES, NATIONALLY AND IN THE MIDWEST ARE WITHOUT ANY FACTUAL BASIS."
Petroleum retailers say any temptation by filling stations to raise prices for the summer months would be offset by the intense competition between them.
But, while the industry argues there's a good explanation for higher prices, many motorists are skeptical.
Marco Rivas/Motorist: "I HAVE HEARD SOME STATIONS ARE JACKING THE PRICES FOR THEMSELVES AND STUFF."
Dave Pratt/Motorist: "BASICALLY I THINK PEOPLE IN CHARGE OF GAS PRICES KNOW PEOPLE ARE GOING TO BE TRAVELING. NOTHING IS GOING TO STOP THEM. IT'S ONE OF THOSE ELASTIC THINGS, IF I REMEMBER MY ECONOMICS CLASS PROPERLY. THEY'RE JUST GOUGING US, TAKING ADVANTAGE OF US."
There's actually one practical way to combat higher prices, and that's by keeping your car well-maintained.
Be sure you've had a recent tune-up; change your car's fluids and filters when they need it; and keep your tires properly inflated. AAA says that for every pound of under-inflation you lose 2% of your fuel efficiency, and that certainly adds up over time.
