Why aren’t gas prices dropping in Arizona?

Prices for barrels of oil have declined but gas prices haven't matched in Arizona 3 On Your Side asked some experts.
Published: Mar. 24, 2022 at 7:44 PM MST
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PHOENIX (3TV/CBS 5) — Oil and gas prices have been skyrocketing for weeks now. For a while, gas prices went up daily and that continued even after the cost of oil went down. So why don’t our gas prices match up?

The average price of gas for Phoenix last week is $4.64 per gallon. On Thursday, it was up to $4.71 a gallon. So it keeps going up although the cost of oil has dropped. But that’s not how it worked a few weeks ago when oil shot up to $130 per barrel. The day that happened, gas prices immediately went up. But even though oil has gone down, gas is about the same price or increasing. So what’s going on here?

Well, it depends on who you talk to. One expert told Arizona’s Family it’s about greed and has nothing to do with supply and demand. For example, when oil starts to rise, the suppliers panic and don’t want to lose money down the road so gas prices go up right away.

But when oil goes down, gas prices stay about the same because they want to see what happens. But other experts disagree like Angie Gildea. She’s with KPMG International and says it is about supply and demand. “Yes, it’s true, we do see a quicker spike in gas prices when oil prices increase. Overall, there is a comovement and they are related so gas prices do line back up as crude oil prices fall. But the speed at which they do so can vary it’s about the dynamic market with supply and demand,” she said.