Should we worry about rising gas prices?
KINGMAN – Prices of gasoline continue to rise across Arizona with the cheapest prices, as of Friday, at $2.89 and $2.93 per gallon. Just mere weeks ago, gas was hovering around $2.45 per gallon locally.
The American Automobile Association recently promised the national average would not hit $3 this summer. Will they be able to keep their word?
Lynn Githens, operations manager with TEXMO Oil Company, 2950 E. Andy Devine Ave., is not concerned.
“Things will smooth out,” he said. “We are simply moving to summer blend fuel. There’s nothing unusual about it.”
To understand the prices at the pump, there are a number of influencers to consider, Githens explained. Kingman gets its gas either from Las Vegas or from Phoenix. Vegas gets gas from refineries in California and Utah, and Phoenix and Tucson get theirs from refineries in Texas.
“In order for the refineries to start producing new gas, they have to empty their tanks. Fuel holders react to these changes, often raising the price depending on what’s coming ahead from refineries,” he said.
So when the media reports shortages in local Circle K and FRY gas stations, it has nothing to do with supposed supply problems in a refinery in California?
“Leaks and fires can influence the price,” Githens said. “But we had them last year, too. Also, everything starts at the price per barrel.”
According to markets.businessinsider.com as of Friday, that price was $63.76 per barrel.
Crude oil is a commodity, which price fluctuates depending on international situations such as OPEC reductions and sanctions placed on Iran or Venezuela. The worst year Githens remembers was 2012.
“About this time of the year, diesel was $4 per gallon and unleaded was right behind,” he recalls.
So maybe the Kingman’s average for the price of gas being a bit over $3 per gallon is not the end of the world.
“My wife is in California now,” Githens said. “She just paid $3.89 for gas.”