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 west1. The Cost of Crude OilThe cost of crude oil is through southern Idaho along the Snake River Valleydetermined by supply and demand on a global from reneries in Utah and the Yellowstone Pipeline,basis. World economic growth is the largest which crosses the northern part of the state (seedriver for global demand because, as a state Figure 1). Of these, only the NWPS Pipeline deliversdevelops, it makes greater use of fossil fuels, rened fuel products to Idahoan terminals. Thethus driving up the demand for and price of Yellowstone Pipeline transports fuel from reneriescrude oil. The major global sources of crude oil in Montana to terminals in Spokane, Washington,are the Organization of the Petroleum Exporting and the fuel is then trucked back to northernCountries (OPEC), the U.S., and Russia. Prices Idaho.1 Reneries in northwestern Washington alsodrop when global production outpaces global contribute to Idahos petroleum supply throughdemand, while prices increase when production a multi-stage route, which includes the Olympiccant keep up with global needs.Pipeline and Columbia River barges that transport2. Tax RatesIdahos gas tax and fee rates sit at rened petroleum upriver from Portland to Lewiston. 2about $.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 equallygasoline produced depends on the type of crude between the commercial and residential sectors.1 oil used and the type of processing technology Idahoans typically spend more on transportation fuelused by the renery. Blending in other than people in more densely populated areas of theingredients, like ethanol, aects prices too.country because of the rural nature of Idaho and the4. DistributionGasoline prices tend to be higher lack of a petroleum reneries in the state.2 Most ofin southern Idaho because this part of the state the motor fuel sold in Idaho contains 10% ethanol.is serviced by just one pipeline from Salt Lake The state has one ethanol plant located in the town ofCity reneries. Prices in northern Idaho, on the Burley. Lastly, only about 7 in 100 Idaho householdsother hand, tend to be cheaper because the area use fuel oil, kerosene, or propane for home heating.1 is serviced from pipelines coming from Montana The most prominent of these fuels, propane, is usedand Washington, plus product barged up the to heat homes and businesses throughout the Idaho,Columbia River.especially in rural areas. In 2019, residential propane5. Retailer Costs & Pro\x1ftsRetailers adjust their prices in Idaho uctuated between $1.62/gallon toprices to cover the cost to buy the gas and costs $2.53/gallon. Propane is also used as a transportationof operating their station (wages, benets, fuel, though consumption is highly seasonal, withequipment, and taxes).3peak consumption in fall and winter.2Fuels 67'