AAA: Nevada average gas price third highest in lower 48

Nevada's gas prices are the third highest in the lower 48, according to the latest AAA fuel gauge report.

While the nation experienced an overall decrease in the cost of fuel, the average gas price in the Silver State rose 5 cents to $2.93 a gallon compared to June. The average price in Reno shot up 17 cents to $3.11 a gallon while the average price in Las Vegas grew by 5 cent for $2.85 a gallon.

The national average is $2.71 a gallon, a one cent decrease from June.

"Travel projections for the July 4th holiday were above and beyond what most analysts expected and retail gas stations certainly adjusted their prices for that," said Michael Geeser, spokesperson for AAA Nevada. "The good news for consumers in Nevada is that so far in July, gas prices have only fluctuated up or down about one cent a day."

One reason Northern Nevada's gas prices differ so much from Southern Nevada is the source of its refineries, according to the AAA.

The northern portion of the state receives its refined gas from the Bay Area where prices are normally higher than in Southern California, the source of Southern Nevada's refined gas.

Excluding Alaska and Hawaii, Nevada has the third highest average gas price in the country, trailing California and Washington. The highest average price in the country is $3.50 in Alaska. California's average of $3.14 per gallon is the highest price in the lower 48 states.

Among the areas in which AAA tracks fuel prices, the least expensive gasoline in the country is found in Greenville, South Carolina, where the average price of gas is $2.43 per gallon. The highest average price in the nation is in Wailuku, Hawaii, where the average price per gallon is $3.78. Among the lower 48 states, the highest price is in South Lake Tahoe, where the average price is $3.35.

Meanwhile, oil prices remain in the $70 range.

This current pricing trend seems to be following the lack of confidence in the long-term economic outlook. Some positive signs have been emerging, including a recent steady growth in corporate profits. But lingering concerns, such as the European debt crisis and predictions of a higher than average hurricane season continue to dampen any hopes for immediate positive trends.