Gasoline prices around the state appear to have stabilized during the past month as the Fourth of July approaches, bringing relief to many motorists who fear they would face price gouging at the pump over the holiday weekend.
New Mexico's average price for regular unleaded has remained between $1.45 and $1.50 for the past week, close to the national average of $1.49. The price, however, is about eight cents to 10 cents more than this time last year in the state, according to the Automobile Association of America.
The biggest increase in gasoline prices throughout the state came last month when the average cost per gallon jumped from $1.32 to nearly $1.45.
"Historically, gas prices will rise just prior to a holiday weekend because of the increase in demand for fuel and the increase in traffic volume," AAA spokesman Dan Ware said. "However, when prices do rise, it is not necessarily due to price gouging. There are a number of reasons that could contribute to the situation."
Ware said the United States has a large enough stockpile of gasoline right now to keep the cost at the pump as low as possible, but unforeseen problems such as mishaps at any of the nation's oil refineries could result in sudden increases.
He added that he sees the low gasoline costs across the state as a boost for tourism on a three-day weekend that he already believes will be the busiest Fourth of July holiday in nearly a decade.
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"Lower gas prices could have a beneficial impact on travel overall, but there's enough demand among travelers that gas prices won't be a deterrent for people planning to travel," Ware said.
An estimated 37.4 million motorists are expected to be on the nation's roads this weekend and the state's tourism is anticipated to increase by more than 2 percent, Ware said.
Sam Thompson, spokesperson for New Mexico Attorney General Patricia Madrid, said increases in gas prices are rarely the result of greed, but rather the natural forces of the economy at work.
"Just because fuel prices fluctuate, it doesn't mean there is price gouging at work," Thompson said. "People often mistake price hikes for price gouging, though they are two very different things."
Price gouging refers to gas stations charging prices that grossly exceed the market value and shouldn't be confused with the economic rule of supply and demand, she said.
Thompson said New Mexico has no laws in place regarding the practice of price gouging, but there are stipulations regarding the unlawful act within the state's Unfair Trade Practice Act.
She said the attorney general's office will only bring charges regarding price gouging when it has determined that several gas stations are involved in collusion to up the prices of their gasoline.
Many gas station owners and managers say that despite what some may believe, increases in gas prices don't bring them booming profits, but often negatively impact their business.
"Not only do we have less customers when the price of gas rises, but our revenue is significantly less," said Judy Gestewa, a manager at the 7-Eleven gas station at the corner of University Boulevard and Central Avenue.
Some UNM students say they understand that the fluctuating cost of gasoline is out of gas station owners' hands.
"I try not to let the often rising cost of gasoline bother me, and when the cost of gas does begin to rise, as it often does around any holiday, like everyone else I just grit my teeth and bare it." said Joe Lane, a senior communications major.
"However, I always breathe a sigh of relief when a tank of gas doesn't cripple my wallet," he added.
