Why average Phoenix gas prices are above $4 per gallon
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It may be April, but summer gas prices (and temperatures) are here already.
Why it matters: High fuel prices are one of the largest drivers of inflation and are likely to play a role in how voters perceive the economy in this competitive election year.
Zoom out: The entire nation has seen rising prices since January, but Phoenix's average price was 65 cents higher than the national average as of April 1, according to GasBuddy data.
- According to AAA, Arizona had the seventh highest average price in the nation as of last week.
By the numbers: Metro Phoenix started the month with an average price per regular unleaded gallon of $4.27. That's more than a $1 increase since January.
Driving the news: A combination of factors has pushed up prices this year, AAA spokesperson Julian Paredes tells Axios Phoenix
- Seasonality: Spring break kicks off a period of increased demand for gas as more people take road trips. This typically keeps prices elevated through summer.
- Supply: Several California refineries — which produce much of our gas — are undergoing maintenance, creating a supply shortage.
- Global conflict: The wars in Ukraine and Israel have kept oil prices high internationally.
Between the lines: Arizona gas prices are almost always higher than the rest of the country because our car-dependent cities keep demand high, he added.
- Plus, California refineries tend to produce the most expensive fuel because of that state's taxes and environmental regulations.
Could be worse: This time last year, the average gas price sat at $4.97 due to supply issues caused by refinery maintenance in Texas and New Mexico.
What we're watching: The work on California refineries should finish by Memorial Day, possibly giving Arizona a slight price reprieve.
- Yes, but: High international oil prices from continued conflict in the Middle East may outweigh any refinery-related cost decreases, Paredes said.