Idaho gas prices begin retreat

BOISE — The average retail price of gasoline across Idaho appears to have finally peaked early this week and is beginning to slowly retreat from a record of more than $2.09 a gallon.

But the industry does not expect any dramatic price declines before demand from the summer driving season begins weakening in the fall.

The AAA of Idaho said its daily survey of pump prices for self-service unleaded gasoline showed the average dropping nearly a half cent on Friday to just over $2.085. It is the first day below $2.09 in about a week.

The average hit a record $2.094 last Saturday and stayed there into the beginning of the week before the decline began, the survey showed. A drop from record highs was recorded for all three major areas of the state — Boise, Pocatello and Coeur d’Alene.

“It’s a positive sign,” AAA spokesman Jim Manion said, citing industry response to indications from the world’s oil producing nations that they intend to increase production. Crude oil prices exceeded $42 a barrel on June 1, but have dropped back to around $38 a barrel in the past several days, reflecting the optimism over future supplies.

From mid-January through last weekend, the average price of gasoline in Idaho rose 51 cents, putting pressure on the economy across the board from individual households through farms and businesses to local and state governments, especially law enforcement agencies.

But if soaring prices are affecting driving habits, it has only started to occur recently. Revenues from the state’s 25-cent-a-gallon gas tax came in through April just as transportation managers predicted before the price spike. But analysts said there have been some indications in the past month since the psychological $2-a-gallon barrier was broken that motorists may have finally started curtailing their trips.

The national average peaked at more than $2.05 a gallon just before the Memorial Day holiday weekend and has fallen more than a nickel since.

But Manion cautioned motorists against expecting any quick return to pump prices below $1.60 like they saw when the year began.

“We think we will see the prices go down a bit, but we don’t think we’ll be seeing a return to that level, particularly during the summer months when demand is higher,” he said. “When the demand decreases in the fall, maybe that will be a different matter.”

Nationally, Idaho’s average price ranked 12th on Friday.

Within the state, Panhandle motorists were bearing the brunt of the surge in gas costs. Although the average price dropped nearly two cents a gallon since Thursday, it still stood at over $2.15.

The price was off almost three-quarters of a cent to just over $2.05 in the Boise area while it was down a half cent to $2.035 in southeastern Idaho.