Breaking down higher gas prices in the Phoenix area
PHOENIX - The Phoenix area is no stranger to high gas prices, and the numbers continue to increase in the Valley.
Experts say gas stations are trying to get rid of the winter blend and bring in the summer blend. There are more factors, too.
Marcus Jackson was filling up his tank in Phoenix on April 10 and said "I think gas prices are getting a little bit too high out here."
Lunyching Thiyang, also getting gas, agrees.
"I don't know why, but it seems like every other month it goes down, and then it jumps back up," Thiyang said.
Robert Donnellan, who works for IGEN, a tax compliance agency, spent 36 years in the oil industry as a tax director and explains what's behind the almost $5 per gallon.
"The cost of crude oil today, I think was like $85/$86 on average, which would give you a built-in cost of probably $2.04 a gallon just for the crude oil. Then when you go to the refineries and the refineries have to refine that product. It's generally anywhere between 50 and 70 cents a gallon to refine it, to make the gasoline that we use," he explained.
Donnellan says then you factor in all the jurisdictions, like different types of government agencies and environmental agencies.
High gas prices: There are a number of reasons behind the recent pain at the pump
Figures from GasBuddy show as of April 3, the average cost for a gallon of regular in Phoenix is $4.58, and some experts say prices could go even higher.
"In Arizona you've got a gasoline tax of 18 cents a gallon. You've got federal tax which is nationwide at 18.40 a gallon, and then you got an underground storage tax which is imposed by the environmental agency in Arizona," Donnellan said.
That comes out to a penny a gallon, and then you've got other federal taxes which equate to around a penny a gallon.
"On a state by state basis, you're looking anywhere between 30 and 70 cents a gallon just in state excise taxes and fees," Donnellan explained.
Another factor is what the retail gas station's profit margin is, which Donnellan estimates is about 14 cents a gallon.
'Delay filling completely': Gas expert weighs in on Phoenix area gas prices, shortage
If you haven't noticed yet, gas prices have shot up within the last few weeks in the Phoenix area and an expert with GasBuddy is explaining why you shouldn't fill your entire tank up.
The cost of transporting gasoline, he says, and the cost of additives that gas stations add also contribute to the cost of gas.
"It's a little stressful, but it's something we have to do, but also getting the prices down is something we need to do," says Marcus Jackson, who was getting gas on April 10.
Experts say gas prices are expected to come down in June, July and August.
AAA also says another culprit is the high cost of oil. Gasoline's main ingredient is hovering at $80 per barrel.
After a drive around the Valley on April 14, the cheapest price we found was $4.49. That's about ten cents more compared to April 10 – the highest price was $5.23.
Arizona ranks third in the nations top 10 most expensive markets, sitting right behind California and Hawaii at $4.52.
A gas station in Mesa is far beyond that at $5.23 a gallon.
"Part of it is OPEC making a surprising decision last week to cut part of their supply. That's increased the prices of oil in the global oil market. That's accounted for some of the increase," says Julian Paredes with AAA.
He says regional supply issues like New Mexico and Texas going down for spring maintenance is another contributing factor.
"Southern Arizona has been particularly affected by this. That region around Pima County, they get their gas from Texas and they were particularly affected by the refinery shut down so proportionately, southern Arizona has been affected more but Maricopa County and northern Arizona, they traditionally have higher gas prices anyway because that gas comes from California," Paredes said.
If there's any good news, he says, it's that gas isn't as expensive as it was last year.
The highest recorded average price was in June 2022 at $5.39.