HERALD POLL: Can consumers lower gas pricesfi

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It's happening again.

While people around the country are seeing relief from high gas prices, Utahns are paying above the national average.

As of Tuesday, AAA reported that the average price of a gallon of regular unleaded gasoline was going for $2.975 per gallon. But in the Provo-Orem area it was $3.188. Utah's average price went down a nickel in the past month, while the national average dropped almost a quarter in the same time period.

It's enough to make some drivers wonder if Utah's petroleum industry has us all over an oil barrel.

Let us be clear. We are. Surprise!

The last time pump prices were seriously out of sync with the rest of the nation Gov. Huntsman commissioned a report in which the Utah Department of Commerce found that retailers were making a healthy profit on gas sales even when the wholesale prices dropped. The report did not uncover any evidence of price fixing, perhaps because of limited data. Only four out of 24 retailers responded to the state's request, and the information submitted was incomplete.

John Hill, executive director of the Utah Petroleum Marketers and Retailers Association, said this year's problem is the same thing that has always plagued Utah's gas prices: isolation and the law of supply and demand.

Hill said Utah's refiners and retailers do not depend upon imported oil, so gas prices in the state do not respond rapidly when the prices drop. Utah is also more affected by regional demand than by international events, he said. If Arizona experiences a shortage of fuel from its Texas suppliers, it draws on Utah refineries, which shrinks supply and raises prices here, Hill said. As the other states get their problems straightened out, Utah's prices drop -- eventually.

"We're always following the national average," Hill said.

Tell that to Utah drivers who hear about prices dropping rapidly everywhere else.

But can anything be done about itfi

One gut instinct is to demand government regulation. This past month, the U.S. House of Representatives approved legislation that would outlaw gasoline price gouging, with profiteers fined as much as $150 million. However, the measure, if it becomes law, would be in effect for only 30 days, and then only if the president declares an energy emergency.

That does little to help people who think they're getting ripped off the rest of the time.

Then there's the problem of proving price gouging. The standard "beyond a reasonable doubt" applies in criminal cases -- a high bar. The Federal Trade Commission reported that an investigation after Hurricane Katrina found 15 cases that appeared to be price gouging, but it noted that there were other factors at work that could suggest alternative reasons. That's enough for a jury to vote for acquittal.

But there is a way that consumers can drive prices down. It requires some cooperation and a little sacrifice: Use less gasoline.

We're not talking one of those useless and pointless one-day boycotts of gasoline but a significant cutback for an extended period, using the law of supply and demand.

There are ways to do this. For instance, take mass transit to work. With the price of gas as high as it is, it may be cheaper for some people to just take the bus or train to work. Granted, it takes longer than driving, but it can help save money while providing other benefits. A long, passive ride can help you decompress after a day at the office.

If a bus isn't practical, consider organizing a carpool with co-workers, and split the price of gas. This not only reduces everyone's gas bill but eases congestion and air pollution by taking more cars off the road.

Even with those steps, there will still be times when one needs to drive a car. Try consolidating trips to reduce driving and fuel usage.

If Utahns are willing to give up some driving, the retailers will be forced to lower their prices.

But then if people start driving again on cheaper gas, prices will only climb again. Sigh...

Truth is, we're in a box. And everybody should know by now that the long-term answer to our driving woes is to get off gasoline and stay off.

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What do you thinkfi

What can we do to lower gas pricesfi Send your comments to dhpolls@heraldextra.com or call 344-2942. Please leave your name, hometown and phone number with your comments. E-mail comments should not exceed 100 words; voice-mail comments should be no longer than 30 seconds. Anonymous and unverifiable responses will not be published.

The Daily Herald will publish comments on July 8.

This story appeared in The Daily Herald on page A5.

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