Idaho Gas prices down in 2020, future outlook dependent on COVID vaccine

EastIdahoNews.com file photo
BOISE — At 64 cents, Idaho enjoyed the third-greatest decrease in per-gallon gas prices in the nation during 2020.
The state’s current average price, $2.27 per gallon for regular gas, is four cents cheaper than it was one month ago, according to AAA Idaho. That price is just 12 cents above the current national average of $2.15 per gallon.
Idaho, normally averaging the seventh-highest per-gallon price nationally, has moved down to twelfth-highest.
Statewide prices are continuing to drop while the nationwide price is on the rise, and state prices are expected to dip further before the end of the year.
“It’s still too early to predict how current restrictions will impact holiday travel volumes, and in turn, gas prices,” AAA Idaho spokesperson Matthew Conde said in a news release. “Drivers might pay a little more to fill up in the days leading up to Christmas, but right now, things are looking very good for the family budget.”
Colder temperatures combined with travel restrictions stemming from the ongoing COVID-19 pandemic have driven travel down and with it gas prices, Conde said.
That is based on population density, Conde said. The fuel demand of Idaho’s rural areas does not meet the supply reserve during the winter months. The same cannot be said of Utah, from which Idaho gets the majority of its fuel, where metro areas “soak up the supply” needs year-round.
On a more localized base, the Idaho Falls area is below the statewide average, currently sitting at $2.19 per gallon, while Pocatello, at $2.27 per gallon, is right on the state average.
COVID-19 and the vaccine will have a say in what gas prices do both nationally and statewide next year, as well.
“In the short-term, it’s going to have a lot to do with the rollout of vaccines,” Conde told EastIdahoNews.com in a phone interview. “The market is going to react optimistically or pessimistically based on how the vaccines are coming out, and how effective they are and what the timing is.”
Nevada and Arizona are the only states to see greater price decreases than Idaho over the past 12 months. Delaware is the only state to endure a price increase during the same time frame.
Gas prices can be monitored and measured at gasprices.aaa.com.
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Source: eastidahonews.com