Average El Paso gas prices near $5
EL PASO, Texas (KVIA) — The average price for a gallon of regular unleaded gas in El Paso reached nearly $5, according to the American Automobile Association. As of Wednesday, AAA said drivers in El Paso are paying an average of $4.49.
AAA said the average price last year was $2.88.
People like UTEP student Leslie Ruiz, are feeling he impact on their wallets saying she commutes to school and only works part time in addition to having to use premium gas for her car.
“I think it’s crazy, personally I use premium gas, so it’s almost $6,” Ruiz said. “I have to use like $80 to fill it up.”
Ruiz even said she has even had to ask her mom for gas money.
Crude oil prices also remain high amid the war in Iran, which has been impacting how the world’s oil supply passes through the Strait of Hormuz.
AAA spokesperson Daniel Armbruster said this is because the Straight of Hormuz ships one fifth of the world’s oil supply and the global oil markets can be disrupted because there is not enough pipeline to replace the production.
University of Texas at El Paso Economics Professor Tom Fullerton said the connection to crude oil prices and what people pay at the pump comes from multiple factors but the proportional increase works out 3 cents at the pump for every dollar the price of crude oil goes up but added this alone would only lead to $2.64 per gallon.
The conflict in the Middle East, he said, is something he doesn’t see ending soon which is why he said as a result gas and oil prices are not likely to come down either because of the consequences it has on the energy sector.
“Wars are easy to get into, but difficult to end,” Fullerton said.
Fullerton added that the rest of the added costs leading to the $4.49 average is a combination of shipping costs as well as taxes at the state and federal level.
Another effect of the continued conflict in the Straight of Hormuz that translates to the borderland according to Fullerton is higher inflation and interest rates which he said leads to less disposable income and less profits for businesses.
This, Fullerton said, leads to lower demand for labor or less jobs as well as more bankruptcy filings than normal in Las Cruces and El Paso.
It’s this ‘energy shock’ as Fullerton put it which has not had a down turn why he said he cannot rule out a possible recession if conditions do not change.
Ruiz said she doesn’t know what the solution is, but thinks there should be less of a burden for people at the gas station.
To find gas prices you can go to GasBuddy’s website here.
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