Arizona Governor Takes Action Against Rising Gas Prices

Categories: Breaking NewsEconomyGovernment NewsNews

Gas prices in Arizona are on the rise due to California refinery closures.

News Summary

Governor Katie Hobbs is responding to surging gas prices in Arizona due to refinery closures in California. Average prices in Phoenix have jumped 59 cents recently, prompting discussions with California’s governor to find solutions. Valero’s planned closure of the Benicia refinery in 2026, driven by cost increases and environmental regulations, is expected to severely impact Arizona’s fuel supply. Residents are advised to adopt strategies to save on fuel costs amidst rising prices.

Phoenix — Arizona Governor Katie Hobbs is actively taking measures to prevent further increases in gas prices as the closure of California refineries threatens supply. The implications of an unexpected fire at the Benicia refinery in California last week are already being felt, with recent data showing that gas prices in metro Phoenix have surged by approximately 20 cents per gallon.

Valero has announced its plan to close the Benicia refinery in April 2026, attributing the decision to escalating costs and California’s stringent environmental regulations. This closure, combined with another refinery in Los Angeles set to shut down later this year, is expected to result in a significant loss of 309,000 barrels per day in California’s refining capacity. This situation is particularly pressing for Arizona, which lacks local refineries and relies on fuel transport from California to meet its energy demands.

In response to these developments, Governor Hobbs has begun discussions with California Governor Gavin Newsom to explore solutions aimed at mitigating disruptions in fuel supplies. A spokesperson for AAA Arizona underscored the reality that California’s fuel supply challenges impact the entire Southwest region, highlighting a direct correlation between California’s refining capacity and Arizona’s gas prices.

Recent statistics reveal that the average price of regular gasoline in Phoenix has risen by 59 cents in the last month alone, reaching approximately $3.53 per gallon. Despite these hikes, gas prices in Maricopa County remain lower than the previous year, when prices exceeded $4 per gallon.

Factors Behind Rising Prices

Several factors have contributed to the current gas price increases. Analysts point to several elements including increased fuel demand, the seasonal switch to summer gasoline formulations, and existing refinery maintenance issues. Experts predict a potential rise of an additional 30 to 40 cents per gallon in the coming month due to these compounding factors.

Typically, gas prices experience a spike in the spring as they tend to peak during the summer travel season due to increased demand. Historical trends suggest that gas prices usually plateau by mid to late spring and start tapering off around Memorial Day. Currently, Arizona’s average gas price ranks as the seventh highest in the United States, a status primarily driven by the state’s dependence on out-of-state fuel sources and California’s regulatory environment.

Seasonal Impacts and Pricing Variability

The transition to cleaner-burning summer gasoline usually adds a premium of about 10 cents per gallon for consumers. Maricopa County has a history of utilizing a distinct, cleaner-burning gas blend, which contributes to higher fuel costs than other parts of the state. Additionally, increased demand related to events like spring training and anticipatory summer travel contributes to rising gas prices across the region.

As of early March, the average price of gasoline in Arizona was recorded at $3.38 per gallon, slightly lower than the previous week. The variation in prices across different areas in the state is notable, with Yuma enjoying the cheapest prices at around $3.12 per gallon due to its proximity to California fuel sources. In contrast, price discrepancies exist in eastern counties near New Mexico refineries, with Graham County averaging as low as $2.79.

Given the prevailing circumstances, residents in metro Phoenix have observed fluctuating gas prices, with certain areas like Scottsdale seeing prices rise as high as $3.69 per gallon.

Tips for Consumers

In light of rising gas prices, consumers may benefit from adopting strategies to save money at the pump. Actionable tips include shopping around for the best prices, utilizing cash discounts, and engaging in more efficient driving practices to improve fuel consumption.

With Governor Hobbs’ proactive approach to communication and intervention, Arizona is attempting to navigate the complex dynamics of fuel supply and pricing amidst ongoing challenges in neighboring California.