A new report analyzing the impact of high gasoline prices on Utah’s economy has been released by the Utah Office of Energy Development (OED). The report also explores why gas prices are, on average, higher than the rest of the nation. The OED developed the report at the request of Gov. Spencer J. Cox.
The report, hosted on OED’s website, outlines supply and demand intricacies and governmental involvement that affect the price at the pump. Many of the contributing factors arise in other states, but because Utah’s gasoline market is tied to those higher-priced markets, it causes Utah’s prices to increase as well, according to the OED analysis.
“After seeing historic gasoline prices across the country and that Utah’s prices were trending higher than the national average, it became clear that we needed a deeper understanding of the petroleum supply chain in Utah,” said Cox. “In an effort to understand the market and determine the causes of the disparity, OED worked with multiple state agencies and industry experts to develop this report, and I applaud their efforts. We’ll continue working with policymakers and industry to find ways to increase supply and reduce prices.”
Utah’s gasoline market is seeing increased demand for its products both within and outside of the state, and Utah’s refineries are producing as much refined product as they are currently able, the report said.
“The additional demand seems to be caused by Utah’s growing population along with refinery closures and higher prices in other states,” said Greg Todd, the governor’s recently appointed energy advisor and executive director of OED. “We are working with Gov. Cox and industry leaders to look for ways to help Utahns find relief while respecting the free market under which the industry operates.”
The full report can be accessed at energy.utah.gov/publications.