Gas prices down, but Nevada still tops average

Thursday, May 15, 2003 | 11:31 a.m.

SUN STAFF AND WIRE REPORTS

While the national average price of gasoline has dropped below $1.50 a gallon, don't expect Nevada, with its dependency on California refineries and some of the nation's highest taxes on gasoline, to approach that price anytime soon.

In a continuing retreat from the mid-March record of $1.72, unleaded regular fuel on Wednesday fell to $1.49 cents a gallon nationwide but climbed to $1.50 this morning, motorists club AAA said.

The nationwide unleaded regular average is the cheapest since Jan. 28, but a dime more than last year when gas prices were moderate. The government predicts prices could drop another 6 cents before bottoming out.

In Nevada, the statewide average for a gallon of regular unleaded plunged to $1.77, down from April's average of $1.97, according to AAA Nevada. Mid-grade fell from $2.08 a month ago to $1.87 today and premium went from $2.16 a month ago to $1.93 today, AAA said.

"Nevada drivers can take a well-earned sigh of relief when gassing up their vehicles," AAA Nevada spokesman Sean Comey said. "After months of wallet-busting prices, we're finally seeing gas prices drop dramatically."

In Las Vegas today, unleaded regular on average was selling for $1.80 a gallon. A month ago, the average was $2.01 a gallon. A year ago, the average price was $1.47.

Across the board, the trends were the same -- mid-grade: $1.89 today, $2.11 a month ago, $1.55 a year ago; premium: $1.96 today; $2.19 a month ago, $1.61 a year ago.

In Reno unleaded regular was selling today for $1.72, down from $1.93 a month ago, but up significantly from $1.58 a year ago.

The statewide average hit a record high of $2.03 a gallon in late March. The highest recorded pump price in Las Vegas was $2.06 on March 25, AAA said.

If you shopped around in Las Vegas today, you could find gasoline in the $1.60 per gallon range. But don't expect to find it anywhere near the national average.

"Nevada depends solely on California refineries so when supplies are low, Nevada, unlike many other states, has no alternative sources," Comey said today. "And there's always the taxes that keep Nevada higher -- about 52 cents a gallon, third highest in the nation."

Comey said the trend toward lower and more stable prices can be attributed to crude oil selling in the $25-per-barrel range -- the cost at which stability traditionally is maintained. In the months leading up to the war in Iraq, prices reached as high as $40 a barrel.

"It generally takes about two months for the benefits (of low crude prices) to trickle down to consumers," Comey said. "We may be seeing prices raise a little before Memorial Day, the start of the busy summer season, but go down again after that.