Arizona’s average gas prices remained high this week, but posted a slight drop, while the national average remained stagnant, according to AAA data released Thursday.
The average price per gallon of gasoline in Arizona is just over $1 above the national average, and was $4.64 as of Thursday.
The national average for a gallon of gasoline this week was flat at $3.53.
But experts say the “significant easing” has just begun and will continue over the next few weeks. Here’s what we know about the oil price landscape today.
Why are gasoline prices so high?
The AAA said prices have been stuck at that level since last week, with no reported declines, largely due to lower demand and lower oil prices.
“Despite mild weather and volatile economic forecasts, drivers are not on the roads and gasoline demand is rising to traditional seasonal levels.” AAA spokesman Andrew Gross said in a release:. “This could be just a lull before Memorial Day, but it could be a trend that will continue into the summer.”
Gas demand, according to new data Energy Information Management Bureau Total domestic gasoline inventories fell by 1.4 million barrels of crude oil to 218.3 million barrels last week, citing AAA, which fell to 8.91 million barrels per day from 9.3 million barrels per day.
After the official close on Wednesday, the West Texas Intermediate rose nearly $2 and settled at $72.83.
“Yesterday, oil prices were recovering faster than originally expected, especially in China after the lifting of coronavirus restrictions, amid growing market optimism that global energy demand is recovering. In addition, the EIA reported that total domestic commercial crude stocks rose by 5 million barrels through 2019, up from 467.6 million barrels last week, the AAA said. .
Gasoline price details:Arizona gas prices ‘steady’, national average down 4 cents
‘Unique Challenges’ Delay Arizona Relief
Arizona was one of the states with the most volatility in its average, according to AAA data, falling 4 cents since last Thursday, trailing only Florida, where pump prices fell 7 cents.
GasBuddy’s head of oil analysis, Patrick De Haan, thinks the drop in gas prices is especially welcome for Arizona.
“For those in Arizona, where gas prices spiked in the spring, significant easing has begun and will accelerate further in the coming weeks,” DeHaan said in a GasBuddy release on Monday.
Without a few factors, this bailout might have been in step with other countries.
“We’ve seen a lot of unique challenges. Arizona has its own state-mandated blend of gasoline, which makes the problem more acute in some areas. Then we need the gasoline we need.” clean burning gasolineSome people don’t, but they still have another type of gas in Arizona that they need,” De Haan told Republic.
Fragmentation, supply, a burgeoning population, Arizona’s requirements, and a number of different blends are major factors in Grand Canyon’s gas problem in De Haan’s eyes.
“If different regions in your state use different blends that are unique only to your state, and if you don’t have a refinery in your state, then you have to make those special blends in California, El Paso, and California. We’re going to rely on refineries in New Mexico, Arizona blends,” De Haan said. “The problem now is that due to Arizona’s population boom, there isn’t enough gasoline, or at least not enough pipeline capacity to carry all these types of gasoline from California alone.”
dozens across America Various summer blends are used throughoutwhich adds a level of polarization to the conversation.
“People get pretty confused when they hear summer and winter and think all summer gasoline is the same, but it’s not. There are 12 different types depending on where you live. That’s why Arizona has this problem. That’s why Chicago refiners have their own blends of reformate in the summer, and if the northwestern Indiana refinery that produces a lot of Chicago’s gasoline goes down, we’ll take it We’ve seen the price go up by $1 a gallon overnight, and when it’s working fine no one notices, no one cares, but when things break, this is what happens.” said De Haan.
In addition, refinery maintenance, an ongoing theme, has helped prevent pump prices from plummeting.
“The pipeline that runs from Texas to New Mexico to Tucson to Phoenix is being maintained by the refinery that supplies that pipeline, and in the west, gasoline is coming in from California, and the pipeline has been running at 100 for some time. Percent continues to be ‘capable,’ De Haan said.
But going back to “commonality” and switching to the same gas as California, for example, could alleviate the problem better.
“If Arizona switched to the type of gasoline used in California, we probably wouldn’t see these price spikes because there’s commonality, there’s more supply in California, and California refiners It already produces gasoline for California, but Arizona opted out of participating in the EPA this summer, “ditching the gasoline program and going its own way, but now it’s paying the price,” DeHaan said. said Mr.
For now, Arizona’s gas price hike could recur every spring, de Haan said.
“Something like this happened this year, and probably next year, unless Arizona politicians decide to repeal the rule,” De Haan said. It’s a big reason why things are happening.” “Unfortunately, where there are not so many regulations on gasoline, there is much more supply, so prices are much cheaper. When applied, it becomes a logistical nightmare.” “We need to fuel that market. .
Gas prices by county in Arizona
As of May 18, Maricopa is the most expensive county in the state at $4.98 a gallon of gasoline.
Graham County is the cheapest, at $3.40.
The rest of Arizona is described as follows.
- Maricopa: $4.98
- Pima: $4.66
- Pinal: $4.52
- Santa Cruz: $4.38
- Coconino: $4.35
- Yavapai: $4.25
- La Paz: $4.15
- Navajo: $4.06
- Hira: $4.04
- Mojave: $4.02
- Apache: $3.97
- Yuma: $3.94
- Greenlee: $3.90
- Cochise: $3.87
- Graham: $3.40
