Gasoline up 13 percent

Jennifer Knight

Wednesday, Sept. 17, 2003 | 11:32 a.m.

Nevada motorists have been hit with a 13 percent increase in the price of gas over the last month, but experts say the upward trend is expected to break soon.

"I'll believe it when I see it," Henderson resident John Rowan said this morning as he gassed up.

He's got good reason to be skeptical. Prices in some parts of Nevada are continuing to hit record highs, according to a study released by the American Automobile Association in Nevada this morning. The average price of a gallon of regular unleaded in Nevada is now $1.92, up from last month's $1.70 price.

In Las Vegas, the average price is $1.89 for a gallon of regular unleaded, 20 cents more than the national average, the report noted.

But the prices should start falling soon, said Sean Comey, a spokesman for AAA Nevada.

"Most of the problems that led to the rapid rise in gas prices have been addressed," Comey said. "Retail prices should be falling significantly. Unfortunately, consumers have yet to see anything but a meager benefit at the pump."

Gasoline suppliers said prices were affected this year by refinery shutdowns around the country, brought on by power outages on the East Coast. But Comey called that reason "somewhat dubious" because Nevada does not get its gas from that region.

"But what some of the industry analysts have told me it adds to the overall jittery nature of the industry," Comey said. "We still think gas prices should go down faster than they have."

This summer's gas prices were also affected by trouble with an Arizona pipeline and continuing tensions internationally but Comey said those problems have been addressed, crude oil prices are down and the market prices should be passed on to consumers in a couple of weeks.

Despite an overall increase of 26 percent from last year, high gas prices aren't likely to affect local commerce or tourism, one local economist said.

"I suspect it has a minimal impact," said Keith Schwer, director of the Center for Business and Economic Research at the University of Nevada, Las Vegas. "The question is: Will an increase of $5 to $10 (for a tank of gas) have a significant impact on people's travel and recreation? My guess is it won't."

As far as the local economy, Schwer said every extra dollar going into the pump is a dollar that is leaving Nevada, but the net effect is not enough to cause a large ripple.

"It has a relatively small short-run effect but it is a negative in terms of dollars flowing out of the state," Schwer said.

In Nevada, Lake Tahoe residents are spending the most on gas at $2.16 per gallon of regular unleaded. Next to that are Reno residents at $2 a gallon, Sparks at $1.99, Las Vegas at $1.89 and Elko at $1.85.