Why are Arizona gas prices rising again? - The Arizona Republic

Why are Arizona gas prices rising again?

Why are gas prices going up? Gas in Arizona is above $4, again
Laura Daniella Sepulveda

While nationwide gas prices keep stabilizing as price leaps slow down, Arizona markets continue to soar at a faster rate, with the state average price per gallon surpassing the $4 mark for the first time in nearly two months.

On Wednesday, Arizona led a ranking of U.S. states with the biggest increase in average gas prices since last week, with an increase of about 20 cents , according to AAA.

As of Wednesday, the average price at the pump across the U.S. increased by about five cents since last week, bringing the average up to $3.87, according to AAA. The current U.S. average of $3.87 is 30 cents more than last month and seven cents less than it was a year ago.

Meanwhile, the Arizona average of $4.17 is nearly 20 cents more than last week, 41 cents more than a month ago and seven pennies less than a year ago.

On another AAA ranking of U.S. metro areas with the biggest change in gas prices since last week, six Arizona metros placed within the top 10.

The east Valley led the list, with a change of more than 30 cents per gallon since last Wednesday. Peoria, Phoenix, Mesa, West Valley and Glendale were also in the list.

Here's all you need to know about skyrocketing Arizona gas prices.

Why is gas going up again?

Patrick De Haan, head of petroleum analysis at GasBuddy, listed two main reasons:

- Oil prices are going up: According to De Haan, oil prices have increased for seven weeks straight, putting pressure on gas prices. Updated data released by the Energy Information Administration showed the demand for oil rose from 8.84 million barrels per day to 9.30 million. In response, total domestic stocks fell from 219.1 million barrels of crude oil to 216.4 million. Last Wednesday's close to the formal trading session had West Texas Intermediate grow by $1.48, bringing its total to $84.40.
- Heat conditions are causing fuel refinery outages: Some of the largest refineries in Texas, which supply Arizona, have suffered from outages because extreme heat conditions this summer have resulted in failure and shutting down of equipment units, according to De Haan.

Why is gas so expensive in Arizona?

According to Julian Paredes, AAA Mountain West Group spokesperson, there are multiple factors involved:

- This summer has been hot: "Arizona was kind of at the center of that extreme heat," Paredes said. Arizona has no gasoline production, but fuel refineries in California, Texas and New Mexico, all of which supply Arizona, were all impacted by extreme heat conditions more than other parts of the country, Paredes said.
- The state has unique fuel requirements: Arizona requires a particular oil blend of gasoline to meet air quality regulations, making gasoline more expensive.
- There is a shortage of pipelines: Refineries in New Mexico and Texas pipe fuel to Arizona via a pipeline to the east, and refineries in California send gas to Phoenix via one to the west. The west pipeline didn’t have enough room for additional fuel, HF Sinclair, the day fuel company, said, and trucking additional fuel to Phoenix from California not only is expensive but would require 50 to 70 trucks a day.
- Some parts of Arizona are supplied by California refineries: De Haan said some parts of Arizona obtain their gas from refineries in Southern California, which have much more expensive gasoline because California's regulations on refineries add to the cost, De Haan said.

"There was a cascading of issues in Arizona," De Haan said. "Basically Arizona, much of the West Coast, is the area where we see the highest prices."

All of these circumstances, added to the state's growing population, have played a role in Arizona gas prices surpassing most states. Yet, they're only part of the story.

Skyrocketing gas prices could have been prevented

An Arizona Republic investigation last month found that oil companies warned state officials in early March that the state was heading for trouble and urged the governor to seek a waiver from federal regulators to get more fuel to the state and avoid catastrophe.

However, state officials rejected the waiver, saying the Environmental Protection Agency wouldn't go along with the plan to seek the waiver and temporarily use a fuel different than the unique blend Arizona requires.

State officials who couldn’t get a waiver this year warned state lawmakers three years ago that the unique fuel blend in Arizona could cause fuel shortages in the future. Back then, lawmakers only got a solution halfway through the Legislature before the bill died in 2020.

While it's impossible to know exactly how much of the increase could have been prevented with a fuel waiver, the Republic found that by early April, a month after fuel companies asked Governor Hobbs to request the waiver, gas prices were rising four times as much as the national average, and kept skyrocketing.

Phoenix prices even topped LA's for the first time in at least a decade when the city's average price per gallon reached $5 in early May.

How can I save money on gas?

With the amount of factors involved, it's hard to predict whether gas prices in the state will see a dip any time soon.

Relief in gas prices usually comes every year around mid-September with a switch to cheaper winter gasoline, De Haan said. Paredes also said that once temperatures cool down and refineries go back to normal, gas prices should stabilize more.

Meanwhile, here are some ways you can save some money at the pump:

Gasbuddy.com shows local gas station prices online or on its app and tells you where to find the cheapest.
- Geico.com is another source, with their search for "local gas prices." You can take advantage of this service whether or not you're a customer of the insurer.
- You can also search local gas prices on Google Maps and Wze, which also offers tips on carpooling.
- Mapquest has a gasoline icon that you can tap to see prices in your area.
- Driving habits like going slower on highways, using cruise control if you have it and accelerating and braking gradually can improve fuel economy.
- Keeping your tires properly inflated, replacing dirty air filters, removing excess cargo from your vehicle, making sure the gasoline cap is on tight and reducing idling if possible can all help you save some gas.
- Use gas rewards programs. Circle K Easy Pay, grocery store discount programs, or using a GasBuddy gas savings card are some of the most popular options. Fry's Food Store customers can redeem points at Fry’s or participating Shell gas stations. A similar program is offered at Albertsons and Safeway stores in Arizona, where rewards can be redeemed for savings at Safeway, Chevron and Texaco gas stations.

County by county breakdown

All counties in the state recorded gas price increases since last week. Here is a county by county break down:

- Maricopa: $4.42
- Pinal: $4.23
- Santa Cruz: $4.07
- Coconino: $4.04
- Mohave: $4.01
- Yavapai: $3.96
- Apache: $3.90
- La Paz: $3.94
- Navajo: $3.82
- Yuma: $3.82
- Gila: $3.80
- Pima: $3.87
- Cochise: $3.70
- Greenlee: $3.66
- Graham: $3.60

Republic reporters Kye Graves and Ryan Randazzo contributed to this article.