Montana Gas Prices

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By Stephanie Domurat

Story Published: Sep 3, 2008 at 7:36 PM MDT

Story Updated: Sep 4, 2008 at 7:21 AM MDT

BILLINGS - Gas prices have dropped significantly in other parts of the nation. But, Montana drivers haven't seen as much relief. Montana AAA says don't expect a huge drop in the price of gas any time soon.

That national decline slowed last week because of Hurricane Gustav. And with more storms on the way, officials say a steep price decrease may not come. They say Montana's prices are typically higher than the national average because of lesser demand.

That means prices won't drop as quickly as in other parts of the country. "When you compare us to the bigger market, bigger markets are more volatile, they react to the price much quicker, because of supply and demand, but when you are in a smaller market, and there is not as varying demand and your supply is pretty constant, the price change will take longer to react," says Denise Harris with AAA.

She says Montana's gas tax does add to a higher price at the pump, but it's not the largest factor. Wednesday's state average is $3.94 a gallon, that's 26 cents higher than the national average. The average price in Billings is $3.87, and officials expect that price to drop slowly. But for now, they say don't expect a huge drop in the price at the pump.

Thursday, Sep 4 at 9:25 PM Alex wrote ...

They're lying to us. Montana gas prices are running the same or higher than major markets in California, and that has NEVER happened before.Gas should be around $3.59 or so MAXIMUM a gallon. A scam is going on!!!

Thursday, Sep 4 at 4:44 PM Tony Kostelecky wrote ...

Why is it that we oil prices go up, gas go up immediatley but when price to down then it takes along time, not buy the excuse of montana takes while, it sure doesnt to raise them.

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