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Why the cost of gas in Arizona is skyrocketing -- and gas stations in Tucson are running out of supply

Gas station gas shortage
Posted at 5:59 AM, Mar 30, 2023
and last updated 2023-03-31 09:22:52-04

Update: Circle K has responded to questions regarding recent gas shortages.

"We have experienced fuel supply shortages at some of our locations in Tucson as a result of various supply chain issues that are affecting retailers across Arizona.

"With maintenance issues interrupting production at the coastal refineries that serve the state, suppliers have faced challenges transporting enough fuel to meet rising demand.

"We are working closely with our suppliers to resume a normal delivery schedule and apologize for the inconvenience this may have caused to our valued customers in Tucson."
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The cost of gas has jumped nearly 80 cents over the past month in Tucson — and as of late, some gas stations in the Old Pueblo are running low on supply.

"Gas prices are down in most of the country, and Arizona is kind of an outlier right now," said John Treanor, spokesperson with AAA.

The national average price per gallon of gas is $3.48, according to AAA. But Arizona's statewide average of $4.27 is fourth-highest in the nation behind only California, Hawaii and Washington.

Gas has increased from $3.18 one month ago to $3.97 as of March 30, according to AAA.

Drivers in Tucson can expect to pay an average of $3.97 per gallon — almost 50 cents above the national rate.

Treanor explained that the main reason for the jump in prices routine maintenance at gas refineries across the Southwest.

"Whenever they do that, it really affects the production on the refinement of oil and that hurts the supply of oil," Treanor said. "That means prices typically go up."

Another factor is playing into the squeeze on supply — severe weather in California.

"Arizona gets its gas from two sources," Treanor said. "It has a pipeline that comes in from California and it gets trucked in from places like New Mexico and Texas.

"When you have refinement issues in New Mexico or Texas straining supply, and you have another strain in California, you could see where really, it's almost a proverbial rock and a hard place for suppliers."

Treanor says there is an upside to the current situation.

"The reason you do maintenance now before that summer demand is up is to avoid much bigger issues when more people are filling up and prices going really, really high," Treanor explained.

Although AAA does not forecast gas prices, it's expected that prices will start dropping once the refineries are running as usual closer to the summer months.

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Emma Miller is a producer for KGUN 9. Originally from Fair Lawn, New Jersey, Emma graduated from Fordham University in 2021 where she earned a Bachelor of Arts in Journalism with a minor in Mandarin Chinese. In April 2021, Emma became the first woman researcher in MLB and NHL Network history. She joined the KGUN 9 family in August 2022 after falling in love with Tucson.