Nevada ranks No. 2 for highest gas prices

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The average price of a gallon of gas in Carson City increased by 7 cents to $2.62 this month, which is one of the highest prices in the state.

The Silver State has the second highest priced gas in the continental U.S., behind California, according to a report released Tuesday by AAA Nevada.

The statewide average price for a gallon of regular unleaded is now $2.49, down 7 cents from the Jan. 16 survey. AAA Nevada tracks gas prices as a service to consumers.

"Usually when crude oil prices rise, retail gas prices follow," said AAA Nevada spokesperson Michael Geeser in a press release. "That hasn't played out this past month. While crude prices have gone up, retail prices have actually dropped. Much of that can be attributed to the recent moves made by the refining industry."

Refiners are in the early stages of beginning to draw down inventories of winter-grade gasoline to make way for the summer blends. This means wholesale prices are lower than they might otherwise be, given the current oil price.

This also seems to back up a recent suggestion by federal government analysts that prices are probably the lowest they'll be until next fall, Geeser said.

Renewed tension regarding Iran's nuclear plans, as well as indications Iran may be supplying munitions to fighters in Iraq, have also been a boost to oil prices.

The highest average price for gas in the continental U.S. is in Yreka and Tahoe City, Calif., where it costs about $2.90. The least expensive gasoline in the country is found in Greenville, S.C., where it costs about $2.02.

Average gas prices

Nevada: $2.49

National: $2.23

Carson City: $2.62

Reno: $2.70

Sparks: $2.69

Las Vegas: $2.39

Elko: $2.42

For information: http://www.fuelgaugereport.

com/

Source: AAA Nevada