Gas prices around the globe have risen steadily over the last year, and with persistent inflation and supply chain issues and new sanctions on Russian oil and gas in response to the war in Ukraine, there are widespread concerns that prices at the pump will only surge more.
The global crude oil benchmark jumped to about $114 a barrel on Wednesday – nearly an eight-year high, while a gallon of regular gas was $4.94 at Tesoro on Main Street and $4.89 at Bigfoot Auto — up from $3.89 and $3.57 in April 2020, respectively, according to a CVN report from then.
Of all communities in Southeast with more than 1,000 residents, Haines has the most expensive gas.
The average cost across Alaska was $3.93 per gallon as of Wednesday, according to AAA. That’s 35% higher than it was a year ago. The national average this week was $3.65, up 26 cents from a month ago.
Patrick de Haan, head of petroleum analysis at GasBuddy, told NPR this week that he predicts that the average gas price nationwide will top $4 before the end of March.
Paul Nelson, owner of Bigfoot Auto, said he hasn’t received any notifications from his supplier about the future of gas prices in Haines but he would assume they’ll rise based on what he’s hearing about the market in general.
At Family Fuel in Skagway regular unleaded gas cost $4.30 a gallon with a credit card and $4.10 with cash on Wednesday. Wrangell’s Alpine Mini Mart charged $4.15 a gallon; at Gas N’ Go in Juneau a gallon was $3.65; it was $4.55 at Petersburg Motors and $4.40 at Sitka’s Petro Express. Shoreside in Cordova priced gas at $4.68 per gallon.
Tim Cochran, terminal manager of Petro Marine, which supplies fuel to Skagway, said prices might be higher in Haines, supplied by Delta Western, since Petro Marine does more bulk shipping around Southeast and sends a big barge to Skagway. But that’s just an assumption, Cochran said.
A Delta Western spokesperson did not respond to a request for comment by press time.
Rising fuel costs have impacted local businesses that receive goods or cargo on Alaska Marine Lines. AML increased its fuel surcharge earlier this year to 15%, after raising it to 12.5% in the fall, up from 6.5% earlier in the year (which was below pre-pandemic levels). “It’s directly related to fuel prices, so as fuel prices have increased over the past year, the surcharge had to raise as well,” Dan Kelly, vice president of freight operations for Alaska Marine Lines, said in a February email to the CVN.
Andy Kline, marketing director at Alaska Seaplanes, said rising fuel prices — along with increased costs associated with pilots’ salaries and insurance — are forcing Seaplanes to reassess its ticket prices, although the company hasn’t yet made a decision about changing rates.
Thirty-one countries, including the United States, announced on Tuesday they would release 60 million barrels of crude oil from their strategic petroleum reserves in an attempt to avert a global supply shortage and stabilize markets.
The Alaskan delegation in Congress called on the Biden Administration this week to work towards energy independence by being more supportive of oil and gas extraction in Alaska.
State lawmakers also were concerned about a proposal in Washington state to slap a 6-cent-per-gallon tax on oil exported to Alaska, but that provision was axed last weekend, according to the Juneau Empire. The revenue from that tax was intended to fund carbon-emission reduction programs and infrastructure in Washington.