While gasoline prices in most of the country are starting to approach, if not exceed $3 a gallon, in Montana, Utah, Idaho and Wyoming gasoline is still dirt cheap, relatively speaking.
The difference between gasoline prices in the northern Rocky Mountain region and the rest of the country can’t all be attributed to taxes. So, what’s the deal with the cheap gas in cowboy country?
Cheap gas is just a reflection of cheap everything. The cost of living in general is low in non-urbanized areas, and the states you list are all very rural (Salt Lake City being the one exception). I’ll bet you’d also see cheap gas in North and South Dakota and Alaska.
cmkeller has it right. Because of the high elevation and the resulting effects on air pressure and combustion, regular gasoline is octane 85 or 86. This results in cheper gas.
but there are also other factors when comparing it to prices around the nation. I didn’t mean to say that lower octane was the only price factor, but it is a constant factor in those higher elevation areas.
Then why are gas prices close to the national average in Colorado and New Mexico, where 85 octane regular is also the norm? When I lived in both states, gas prices there were always a few cents a gallon below the national average – but note it’s “few”, not “fifty” or “seventy.”
Those are the only remaining “Red States” (states where George Bush has an approval rating above 50%.
Now consider, those 4 states combined have less population than New York City. Yet, those 4 states have 8 Senators while New York City shares 2 Senators with the rest of the state of New York.
From Paul Krugman’s op-ed piece in the NY Times on April 21, 2006:
Granted, I erred in the exact makeup of the states. Substitute Montana for Nebraska. However, that probably does little to change the coincidence of Bush support to low gasoline prices. Of course, from there we are into chicken/egg territory.
Submitted for your consideration: These particular states do actually produce petroleum (wells are all over the place!), and their availability may help bring the market down. Not so much as to bring pricing down below $2.00, but I’m sure the infusion of a local supply and refining helps.
Let me take that back to make it sound differently. It doesn’t seem to line up with your theory here… but when I started to think about it, Tripler, those states don’t have near the population and demand for gasoline that we do have here either. That probably has something to do with it.