Here’s how Arizona’s soaring gas prices compare to the nation
Fuel prices are rising in the United States, reaching highs not seen in nearly a decade and a half. The average cost of a gallon of regular gas is now $4.06, 62 cents more than just a month ago.
The surge in prices is due to several factors. In particular, the Russian invasion of Ukraine leads to a reduction in the supply of oil and gas, as many potential buyers reduce their consumption of Russian oil. Russia is traditionally the world’s third largest oil supplier, accounting for 11% of global production. Here is an overview of the 15 countries that control the world’s oil.
Even before the outbreak of war in Eastern Europe, fuel prices were on the rise. The ongoing reopening of the U.S. economy has contributed to higher fuel demand — and broader inflation concerns. Meanwhile, domestic fuel supplies have been constrained as oil companies have reduced investment in new wells in recent years to improve profitability.
According to data from AAA, the American Automobile Association, the average price of a gallon of gasoline in Arizona rose $0.49 over the past month, the ninth smallest increase among the states. As of March 7, 2022, a gallon of regular gasoline averaged $4.13 in the state, which is higher than the national average and 14th highest among states.
The total price motorists pay at the pump is the product of several factors, including the price of crude oil – largely determined by global supply and demand – and taxes. The US government levies a gasoline tax of 18.4 cents per gallon, while states are free to set their own gasoline tax rate. Since January 2021, Arizona has taxed gasoline sales at a rate of 19 cents per gallon.