Gas Prices Soar In Tuscaloosa, Averaging $3.35 A Gallon

Oh, for the good old days of just a year ago when a gallon of unleaded gas was just $2.74 at the pump. Today it averages $3.35 in Tuscaloosa County and across Alabama, an eight cent rise overnight. And with the Iranians blocking exports through the Strait of Hormuz, experts warn that the price will continue to rise.

“Gas prices are all about supply and demand. In this situation with everything going on in the Middle East has created a lot of anxiety in the global oil markets,” said Clay Ingram of AAA Alabama.

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But don't feel bad, there are other states feeling the pinch worse than The Yellowhammer State. The national average is $3.67 with every state ringing up sales above $3.00 a gallon and California is the highest at $5.48.  Alaska is at $4.09, Arizona at $4.29, Hawaii is $4.90, Nevada $4.55, Oregon $4.42, and Washington State is at $4.83 today.

As the Middle East Conflict enters its third week, the price of a barrel of oil continues to skyrocket. Brent crude futures (the benchmark for global oil) rose above $102 a barrel on Friday as the blockade of the Strait of Hormuz continues to choke 20% of global daily energy.

Something to remember is gas prices at the pump don’t only track crude oil. They also include what it takes to refine and move that fuel, the taxes layered on top, and the extra markup your local station adds to stay in business. But gas and diesel prices continue to remain a key concern for consumers because they directly impact so many things from food to retail sales to travel.

President Trump recently announced the release of 172 million barrels of crude oil from the Strategic Petroleum Reserve in an attempt to slow down the rising oil prices.

According to the National Petroleum Council, the U.S. consumes around 20 million barrels of crude a day, similar to the amount that typically flows through the Strait of Hormuz each day. That means the petroleum reserve release will not last long.

Ric Mayers, a businessman and oilman from Vernon recently cautioned listeners on Townsquare Media Tuscaloosa's Steve and DC Morning Show on 95.3 The Bear to not panic buy. He pointed out that currently there is no shortage of fuel but rushing to the nearest gas station to top off the tank will help create one like those during the energy crisis of the Carter Administration. "Just fuel up when you need to, not out of panic. That is what creates shortages and long lines at gas stations," he told listeners.

The good news from Mayers is we can expect a relatively quick drop in gas prices as soon as the conflict with Iran ends.