SIOUX FALLS - The average price of a gallon of regular
unleaded gas in South Dakota hovers around $3, which is among the
highest prices in the nation, while the national average is
$2.80.
Only a month ago, Sioux Falls gas prices ranged from $2.65 to
$2.80 a gallon.
"Up here, we're saddled with the highest prices in the
contiguous 48 states," said Mark Madeja of AAA South Dakota. "And
that's a trickle-down effect of the process: After everybody else
gets supplied, all the more populous places, they supply us."
In Rapid City, gas prices have not taken the same jump, but
they didn't drop as far here this summer as they did elsewhere.
According to AAA, the average price for regular gasoline here is
$2.969, up only 2 cents from a month ago.
Most stations on Saturday were charging $2.919 for the
lower-priced mid-grade fuel that contains 10 percent ethanol.
However, some West Rapid City locations were as low $2.749.
In mid-May and early June, regular gas topped out at $3.359
per gallon, an all-time record for the Black Hills.
The future for gas prices isn't bright, either. Crude oil this
past week closed at more than $80 a barrel for the first time.
Hurricane Humberto shut down three Texas refineries, while the
demand from developing countries such as India and China continues
to be high, keeping prices up.
Oil accounts for about half the price drivers pay to fuel up
their cars.
"It just cuts into whatever you hoped to make," said Marsha
Sumpter of Kadoka. "No matter what the cost of diesel or gasoline,
(farmers) have to drive. … It's a little scary what's going
on."
Madeja said gas prices typically drop in the fall as fewer
people take vacations and other trips. Also, refineries switch to a
less expensive winter gasoline blend.
"Prices should fall back," he said. "But it is still somewhat
of a mystery."
In March 1999, gasoline in Rapid City was priced below $1.
Five years ago, the price was $1.10 per gallon. In fact, regular
gas didn't top $2 in Rapid City until March 2005. Just six months
later, after Hurricane Katrina hit the Gulf Coast, the price in
Rapid City breached the $3 mark.
In the two years since then, the price has not fallen below $2
per gallon in Rapid City.
