b'FUELSOverview Economic Drivers of FuelThere are no petroleum reneries in Idaho. Two majorThere are ve primary drivers that inuence petroleum product pipelines cross the state, thethe price of fuel:North West Product System (NWPS) Pipeline runs west through southern Idaho along the Snake River Valley1. The Cost of Crude OilThe cost of crude oil is from reneries in Utah and the Yellowstone Pipeline,determined by supply and demand on a global which crosses the northern part of the state (seebasis. World economic growth is the largest driver Figure 2). Of these, only the NWPS Pipeline deliversfor global demand because, as a state develops, it rened fuel products to Idahoan terminals. Themakes greater use of fossil fuels, thus driving up Yellowstone Pipeline transports fuel from reneriesthe demand for and price of crude oil. The major in Montana to terminals in Spokane, Washington,global sources of crude oil are the Organization and the fuel is then trucked back to northernof the Petroleum Exporting Countries (OPEC), Idaho.8 Reneries in northwestern Washington alsothe U.S., and Russia. Prices drop when global contribute to Idahos petroleum supply throughproduction outpaces global demand, while prices a multi-stage route, which includes the Olympicincrease when production cant keep up with Pipeline and Columbia River barges that transportglobal needs.rened petroleum upriver from Portland to Lewiston.9 2. Tax RatesIdahos gas tax and fee rates sit at about $.51 per gallon (18.4 per gallon federal Idahos total petroleum consumption is among theexcise tax + 32 per gallon Idaho excise tax lowest ten states due to its small population size;+ transfer fee of 1 per gallon to the Idaho however, per capita petroleum usage is near thePetroleum Clean Water Trust Fund).national average. Approximately four-fths of the3. Re\x1fning Costs & Pro\x1ftsCrude oil is used to petroleum consumed in the state is used in themake a variety of products, vehicle gasoline transportation sector, about one-tenth is used in thebeing just one of these. Furthermore, the type of industrial sector, and the rest is split almost equally between the commercial and residential sectors.8 gasoline produced depends on the type of crude Idahoans typically spend more on transportation fueloil used and the type of processing technology than people in more densely populated areas of theused by the renery. Blending in other country because of the rural nature of Idaho and theingredients, like ethanol, aects prices too.lack of a petroleum reneries in the state.9 Most of4. DistributionGasoline prices tend to be higher the motor fuel sold in Idaho contains 10% ethanol.in southern Idaho because this part of the state The state has one ethanol plant located in the town ofis serviced by just one pipeline from Salt Lake Burley. Lastly, only about 7 in 100 Idaho householdsCity reneries. Prices in northern Idaho, on the use fuel oil, kerosene, or propane for home heating.8 other hand, tend to be cheaper because the area The most prominent of these fuels, propane, is usedis serviced from pipelines coming from Montana to heat homes and businesses throughout the Idaho,and Washington, plus product barged up the especially in rural areas. In 2019, residential propaneColumbia River.prices in Idaho uctuated between $1.62/gallon to5. Retailer Costs & Pro\x1ftsRetailers adjust their $2.53/gallon. Propane is also used as a transportationprices to cover the cost to buy the gas and costs fuel, though consumption is highly seasonal, withof operating their station (wages, benets, peak consumption in fall and winter. equipment, and taxes).10118 I D A H O I N F R A S T R U C T U R E G U I D E B O O K'