Gas prices continue upward march in Las Vegas

By Kyle B. Hansen

Tuesday, April 12, 2011 | 4:10 p.m.

The average price of a gallon of gas in Nevada is now $3.87, a 25-cent increase from a month ago and a 91-cent increase from a year ago, according to AAA.

The national average has risen 27 cents to $3.79 since early March, with averages in all 50 states now above $3.50.

Nevada is tied with Indiana for the seventh-highest prices in lower 48 states, the auto club said.

The high prices appear to be affecting consumers, with demand for gasoline dropping for the last two weeks. But the drop in demand doesn't necessarily mean prices will fall. As violence continues in the Middle East, the price of crude oil has remained at higher levels, although oil prices did tumble on Tuesday.

“Investors continue to be the largest force driving the market price for oil,” said AAA spokesman Michael Geeser. “Instability in the Middle East and North Africa still has them concerned about the world’s supply of crude, which has helped to keep oil prices on the rise.”

In addition, the weak U.S. dollar has also helped keep prices high, Geeser said.

“When the dollar weakens, investors, including those holding foreign currencies, are more likely to invest in U.S. commodities, including crude, which pressures the prices upward,” he said.

In the Silver State, prices in Clark County have risen more than other areas in the past month, but the northern part of the state still has higher average prices.

The average price of a gallon of gas is $3.83 in Las Vegas and North Las Vegas, a 26-cent increase from last month. Prices in Henderson rose 29 cents to an average of $3.85.

In the north, prices rose 23 cents to $3.97 in Reno, 22 cents to $3.90 in Carson City, 26 cents to $3.99 in Sparks and 18 cents to $3.74 in Elko.

The highest average in the United States is in Wailuku, Hawaii, where gas averages $4.76 per gallon. Casper, Wyo., has the lowest average price in the nation, $3.37, but the state average for Wyoming is $3.51.

Historically, prices rise as summer approaches, leading AAA to issue a warning earlier this year that prices could easily break new records.

Las Vegas hit a record high average price of $4.28 per gallon on June 21, 2008, according to AAA. Reno’s record price of $4.22 came the following day.