Idaho gets a break on gasoline prices

Below-average gas prices across the Gem State are making travelers happy this time of year, one Riggins convenience store operator said.

“I think good prices are a good thing for everybody,” said Andrew Puderbach, who has owned the Riggins One Stop gas station and convenience store for about five months.

The American Automobile Association recently reported that Idaho’s average gas price continues to drop even as the U.S. average steadily increases. Pump prices in Idaho are now 10 cents cheaper than the national average.

At the Riggins One Stop, the current daily price is about $2.50 a gallon, although Puderbach said he has dropped it to $2.30 a gallon on occasion, depending on whether there are special activities happening, such as state basketball games, which draw travelers through town.

“If there are events I usually drop (the price) down, and we also have a competitor down the road,” Puderbach said.

With those low prices, “we usually make a little bit off it, but not as much as you would think.”

Puderbach said it’s always his hope that rock-bottom gas prices also will attract customers to come inside the store, where he sells a little bit of everything — from fishing gear to camp supplies, various sundries, coffee, beer, snacks and souvenirs.

The AAA reported that since Jan. 1, U.S. average fuel prices have increased by 13 cents. Over the same period, Idaho’s prices have dropped 28 cents.

“The national average typically functions like a train engine, pulling state averages like Idaho’s along for the ride,” said Matthew Conde, public affairs director for AAA Idaho. “However, Idaho is toward the back of the train, and our state is generally one of the last to react when the U.S. average changes. In this case, that’s a very good thing.”

In some parts of the country, gas prices have increased because of rising crude oil prices and steady demand. But in other locations, with severe winter weather, concerns over fuel availability have motivated drivers to stock up, sending prices higher.

The U.S. average is $2.39 per gallon, which is 12 cents more than a month ago, but still 12 cents less than a year ago. In Idaho, the current average price is $2.29, which is 13 cents less than a month ago, and 29 cents less than a year ago. Washington’s current price is $2.86; Oregon is at $2.74; and Nevada is selling gas at an average price of $2.84 a gallon.

Since the beginning of the year, crude oil prices have increased. On Jan. 1, the West Texas Intermediate benchmark was trading near $45 per barrel. That price was at $55 Wednesday, but rose as high as $57 Friday.

Several factors have affected the global crude supply, including OPEC’s production cuts of 1.2 million barrels per day, increased oil embargos on Venezuela, and tighter sanctions on Iran. All of these conditions have applied upward pressure on oil prices, which in turn affect gas prices.

Meanwhile, domestic oil production is at an all-time high. According to the Energy Information Administration, U.S. oil production recently topped 12 million barrels per day, the highest amount ever recorded. Although the U.S. lost four oil rigs recently, 854 remain operational — 54 more than this time last year. Recent production growth has raised domestic crude inventories to 455 million barrels.

In the Rockies region, gasoline stocks dipped slightly below 7.5 million barrels to end the week, but current supplies are healthy enough to offset price fluctuations in other areas.

Conde said Idaho gas prices are likely to increase in the near future because of rising crude oil prices, spring travel demand, the switch to more expensive summer-blend fuels and seasonal refinery maintenance costs.

Some gas prices around the region Wednesday included Boise at $2.22; Coeur d’Alene at $2.26; Grangeville at $2.60; Kamiah at $2.39; Lewiston at $2.42; Moscow at $2.55; and Orofino at $2.42.

Hedberg may be contacted at kathyhedberg@gmail.com or (208) 983-2326.