SHOW LOW — Ah, remember when gasoline was under $4 a gallon? Well, that was 6:30 a.m. Monday morning and it will be a while before you see it that low again.
Across the nation and Arizona gas climbed sharply over the past week.
By Monday afternoon the average price of gasoline in Show Low hit $4.09 a gallon. It jumped to $4.19 Wednesday morning.
Prices in the area remained at $4.19 a gallon Thursday morning as this story went to press.
The leading cause is market hysteria caused by Russia’s attack on Ukraine — but gasoline is not alone.
Wheat markets are climbing sharply, and it was “limit up” Monday at with the Chicago SRW Wheat futures — jumping 7% to $12.94 per bushel. Monday was the fifth day in a row that wheat futures traded at the “limit up” level, setting an all-time high price ever for the commodity.
In futures markets, “limit up” or “limit down” refers to the maximum increase or decrease in price that is allowed in a single trading day. For wheat, the limit up is triggered when prices trade up or down $0.85 per bushel.
Since Russia invaded Ukraine, wheat futures have soared nearly 50%.
Ukraine produces more than 10% of planet’s wheat crop, making it the fifth largest wheat producer in the world. Meanwhile, Russia is responsible for more than 20% of global wheat production, and sanctions from western countries will complicate the country’s ability to sell one of its biggest exports.
As of press time Thursday commodity prices were:
Gold — $2,001 ounce
Silver — $26.29 ounce
Wheat — $10.96 bushel
Corn — $7.47 bushel
Aldo Vazquez, AAA Arizona spokesperson in Phoenix, said higher prices for crude oil combined with the Russian attack is hurting consumers at the gas pump the most.
“Right now, the main reason we’re seeing gasoline go up is the cost of crude oil,” Vazquez said. “Before the invasion of Ukraine, crude oil was already going up. It was pretty high at about $90 per barrel. As soon as the invasion began it spiked to about $100 per barrel. It’s been going up ever since.”
On Tuesday morning topped $129 per barrel but closed at $124 that night. Wednesday crude oil fell to $109 a barrel and Thursday the commodity was around $114.
Vazquez said in 2021, gasoline climbed at a steady rate through the year with crude oil at $80 a barrel. He said consumer demand is what is keeping prices high.
With crude topping $115 a barrel, “that’s why we’re seeing those massive increases overnight — six-plus cents a night,” he said.
With some experts predicting $5 and even $6 a gallon at the pump ahead, Vazquez said he cannot make a prediction about how high it might go.
“We don’t have a crystal ball here at triple A, so we can’t really say how high they will go or how long this will last. What we can say is as long as the price of crude oil continues to go up, prices will continue to go up as well. As long as this war — between Russia and Ukraine — also on, there’s going to be an effect on the global oil market,” Vazquez said.
The one, two punch of crude prices and war have combined to hammer the gasoline price across the planet.
“Right now, it is just very volatile,” he said.
Vazquez said consumer can do a few things to make a difference in their spending at the gas pump.
He recommended:
• Avoid rush hour traffic or anything that would keep you on the road longer than you need to be.
• Consolidate your trips and do your errands in one trip.
• Make sure your vehicle is in proper working order.
• Make sure your tires are properly inflated.
• Be a good driver and not speeding or accelerating quickly
• Clean out your car to make it lighter and save fuel
• Use AAA.com or use a phone app to find the lowest price for gasoline in your area.
• Don’t allow your vehicle to sit and idle for long periods.
“If you’re going to be idling for more than a minute, it’s probably best to turn off your vehicle than to leave it idling,” he said.
Vazquez said people will likely not travel less even though prices are higher.
“We have seen that demand (for fuel) has been going up for quite some time. That is another reason why we’re seeing gas prices go up. Demand has increased and we’re dealing with a tightened supply. When you have that difference in supply and demand, it’s going to drive up the price. What we have been seeing in our data from last year shows people are planning vacations, booking hotels and car rentals. They are travelling despite the high gas prices. That hasn’t kept people from packing into their vehicles and hitting the road. The road-trip seems to be the main method of transportation. High gas prices are not keeping people off the road,” Vazquez said.