Phoenix gas prices have jumped $1 since March 1, and drivers feel it

On Wednesday afternoon, 25-year-old Destiny Valle pulled off Thomas Road in midtown Phoenix to refill her tank at the Circle K on 15th Avenue. She lives in Scottsdale but prefers filling up in this part of town when she drops off her kids at her grandmother’s because the gas prices are cheaper.

But this time around, Valle’s gas bill wasn’t any lower. In fact, the price jumped in the few minutes the Sephora makeup artist and Scottsdale Community College student was there. From the time she parked at the pump, went into the store to buy snacks and returned to insert the gas nozzle into her SUV, the price at the pump had increased by 11 cents per gallon.

Valle wound up paying $4.45 per gallon to fill up.

“That’s the first time I’ve ever seen it jump up before my eyes,” Valle told Phoenix New Times. “I commute a lot. It’s annoying, but I just eat the price. I’m so busy, I have to.”

Gas prices are up everywhere. Nationwide, regular unleaded is going for an average of $3.58 per gallon as of Wednesday, a more than a 64-cent increase per gallon from last month’s average, according to the American Automobile Association. In Maricopa County, prices are even higher — the average price was $4.43 per gallon as of Wednesday afternoon, a jump of more than a dollar per gallon compared to March 1, according to GasBuddy.

More granularly, prices are higher in the East Valley ($4.34 per gallon) than in the West Valley ($4.32), according to AAA. Peoria has the highest gas prices of the cities tracked, at $4.36 per gallon as of Thursday morning.

While Arizona tends to have higher gas prices than many states, gas prices have spiked as a direct result of the U.S. and Israel’s war with Iran, which began on Feb. 28. The war has essentially closed the Strait of Hormuz, the narrow waterway between Iran and Oman through which 20% of the world’s crude oil passes. On Wednesday, three cargo ships were bombed in the strait, according to the New York Times. 

“We have a global situation,” said Matt McClain, a petroleum analyst for GasBuddy. “Everybody’s paying more in gas right now and diesel as a result of the expedited price increase for crude oil, courtesy of the closure of the Strait of Hormuz.”

The U.S. is not overly dependent on Middle Eastern oil, but crude oil is a global market. If a single factor is affected, gas prices worldwide are affected, McClain said. “Anything that upsets the oil industry has a direct impact on a global scale,” he said.

That’s all happening literally half a world away from Valle and the Circle K pump, and though she tries to stay up on the news, she said she wasn’t aware of the Strait of Hormuz situation. But a few minutes after she drove off with a full tank, someone much more up on world events pulled up to the same pump.

“I don’t think we should be in a war with Iran. I don’t see them as being an immediate threat to us,” said 37-year-old Alonzo Borboa as he stood next to his sedan at the pump. “I think there are definitely other ways that we can sort of be investing our money as opposed to that war in Iran.” 

Borboa works in insurance and said he’s financially secure enough not to worry too much about rising gas prices. He fills up his tank only about once every two to three weeks. But he is worried about how friends who are “already struggling” to keep up with rising prices will be able to withstand the rise in fuel costs.

“I don’t remember the last time I’ve ever had a $55 purchase,” Borboa said, watching the counter on the gas pump slowly tick up. “It’s normally like in the 30s. I can’t remember the last time it’s ever been like that, and I’ve been driving this car since 2010.”

It actually wasn’t that long ago that prices were this high. According to GasBuddy, which has tracked prices since 2008, Phoenix gas hit $4.65 a gallon in 2022, when the country was still reeling from pandemic-related inflation.

Less than two miles away at another Circle K, on Third Street and Osborn Road, 33-year-old Phoenix resident Jacob Barlow looked upon the listed gas prices with disdain.

“It’s crazy… shocker, another war,” he said. “It hasn’t affected (my budget) too much. It is what it is. Sometimes that’s just the joys of the economy.”

It remains unclear when prices will go down. Arizona gas prices are already higher in the summer months due to the state’s statutorily required summer blend, which helps reduce harmful emissions. The federal government could release some of its strategic oil reserve to help bring down prices.

If you’re looking to stretch your gas budget, McClain has some advice: Vigilantly follow the speed limit, ensure your tires are properly inflated, get an oil change and replace your vehicle’s air filters. 

“Anything that places stress on the engine while it’s going down the road, remove the stress,” he said. “Whenever you’re driving well over the speed limit, you’re costing yourself money and fuel.”

But until the war in Iran is resolved, instability will probably be priced into what is currently a “topsy-turvy situation,” McClain said.

“We’re continuing to see prices rise, and I don’t think that’s going to end for a little bit longer, possibly for quite a bit longer,” he said. “We have to take this one day at a time. It’s almost a grin-and-bear-it situation.”