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SALT LAKE CITY — In a car-friendly state like Utah, citizens are concerned about the cost of gas and how much they have to spend on it each time they fuel up. Specifically, a question on residents’ minds has been why, in some counties, gas is significantly cheaper than in others.
Prices vary from county to county in Utah, as well as by state. Many factors contribute to what causes these cost variations, but first, it is necessary to understand supply and demand.
According to Investopedia, supply and demand are the most basic rules for understanding fluctuations in gas prices. Supply is simply defined as the amount of a resource available for use, while demand is based on the number of individuals using the fuel for transportation.
As supply grows to meet demand, costs drop because the resource is plentiful and retailers don’t need to spend as much bidding on the oil. The lower the demand in relation to supply, the lower the cost of fuel. Meanwhile, if supply drops or demand grows and the supply no longer is enough, costs rise.
These basic drivers coincide with the following influencers to determine gas prices both nationwide and regionally:
- Distance from supply
- Supply disruptions
- Retail competition
- Operating costs
- Differences in state and local taxes
- Environmental Programs
Other programs may have placed restrictions on transporting and storing the fuel, which adds to the cost of producing, distributing, and storing gasoline.
- Geopolitics
Gas prices in Utah as of January 3
Utah’s average price for regular gas was $2.584/gallon as of 2018.
On Thursday, January 3rd:
- Salt Lake City’s gas prices hovered at $2.456/gallon on average.
- Provo averaged $ 2.553/gallon.
- Ogden averaged $2.553/gallon.
- West Valley City averaged $2.456/gallon.
- West Jordan averaged $2.456/gallon.
- Orem averaged $2.553/gallon. For more about Utah’s gas prices by city, click here.