Gas prices in Union, Wallowa, Baker counties rank among the highest in the state

Dec. 12—LA GRANDE — The latest gas price statistics from AAA Oregon/Idaho paint both an encouraging and disheartening picture for motorists in Union, Wallowa and Baker counties.

The numbers indicate that average gas prices are continuing to decline throughout the state but they also reveal that fuel prices in each of the three counties remain among the highest in Oregon.

The average price of gas on Monday, Dec. 12, showed a decrease from Dec. 6 across the three counties. In Union County it was $4.57 per gallon, down 6.8 cents. Wallowa County's average was $4.54 a gallon, down 14 cents, and Baker County's average was $4.62 a gallon, a decrease of 7 cents.

Still, Baker County's average cost per gallon remains the second highest in the state, 9 cents less than Curry County, while Union County ranks third and Wallowa is the fourth highest among Oregon's 36 counties.

Information from AAA Oregon/Idaho indicates that as of Dec. 12, Oregon's average cost of gasoline was $3.99 per gallon, which is the fourth highest in the nation. The cost of gasoline is highest in Hawaii where it is $5.14 on average per gallon, and it is cheapest in Texas where the average cost is $2.69 per gallon, according to AAA Oregon/Idaho. The national average is $3.26 per gallon, down from $3.79 a month ago.

Several factors for higher price of fuel

The main reason for the higher fuel prices locally is the distance trucks must travel to deliver gas to Union, Wallowa and Baker counties, according to AAA Oregon/Idaho representatives and Union County gas station owners.

"Trucks don't travel down the highway for free. They are getting only three to four miles per gallon," said Dennis Falk, who co-owns the Falk's Mini Mart gas station in Union with his wife, Jodi.

Falk said he buys his fuel from Boise, Idaho, Pasco, Washington, and Portland refinery centers.

Fred Bell Jr., co-owner of the Short Stop Xtreme gas station with his wife, Tara, in La Grande, said he also purchases his fuel from refinery centers in Boise and Pasco. Presently, Bell said he is getting all of the station's fuel from Pasco because the cost of fuel provided by the refinery plant in Boise is significantly high at this time.

This is one reason why the price for a gallon of regular unleaded gas at Short Stop Xtreme is now $4.29 per gallon, the lowest in the county.

"We want to do everything we can to continue to have the lowest prices in Union County," he said.

Bell said he does not purchase fuel from Portland because fuel trucks coming from there have to make it through the often dicey Columbia Gorge and the grueling Interstate 84 stretch though the Blue Mountains from Pendleton to La Grande. He said trucks coming from Portland always run the risk of being delayed because of bad weather and road closures.

A new state tax, the Oregon Clean Fuels Tax, that took effect about two years ago is also boosting local prices. Bell said the tax, which is 9 cents a gallon, is one that those transporting gas into Oregon must pay. The tax is ultimately passed on to motorists in the form of higher prices at the pump.

Bell said the tax is part of the reason the average price per gallon in Umatilla County, at $4.02, is 55 cents lower than the Union County average. He said many Umatilla County gas stations do not have to pay this tax because they purchase their fuel from Portland distributors.

'Prices are slower to rise and slower to fall' in rural areas of the state

Marie Dodds, the public affairs and government director for AAA Oregon/Idaho, said prices are sometimes higher in small rural areas because there is less competition, meaning there is less of a chance there will be an aggressive competitor who will attempt to drive prices lower. Dodds emphasized that she was speaking in generalities and not about Northeastern Oregon specifically.

Dodds also said that gas prices tend to be more stable in small rural communities.

"Prices are slower to rise and slower to fall," she said.

A big reason is that in smaller rural communities gas stations may receive fuel shipments less frequently. Dodds said some stations receive fuel shipments every two weeks instead of every day like some urban stations do. This means that if a station receives a shipment of gasoline and soon afterward gas prices rise or fall, the owner is less likely to raise or reduce prices until the shipment he or she purchased is sold.

Dodds said all gasoline markets, regardless of their size, are ultimately unpredictable.

"There are as many business plans for gas stations as there are gas stations," she said.

Dick Mason is a reporter with The Observer. Contact him at 541-624-6016 or dmason@lagrandeobserver.com.