Alabama drivers are seeing price increases at the pump this week due to the conflict between the United States and Iran creating uncertainty in the Middle East.
The United States began combat operations against Iran over the weekend. In response, Iran halted the passage of oil tankers through the nearby Strait of Hormuz. According to media reports, Iran has also bombed some oil and gas infrastructure in Saudi Arabia and Qatar.
The conflict has led to oil and gas prices spiking worldwide.
Bart Fletcher, president of the Petroleum and Convenience Marketers of Alabama (P&CMA), told 1819 News he wouldn’t be surprised to see “10 to 15% statewide increases at the retail level.”
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“We’ve seen wholesale prices on regular unleaded gasoline as much as 15 to 20 cents a gallon up over the last day or two and diesel fuel as much as 35 to 40 cents a gallon,” Fletcher said. “We’ve seen what would normally be a pretty significant increase in a short period of time. Predominantly, gasoline is up, diesel fuel is probably up double what gasoline is up. If you happen to be driving a diesel pickup truck or something like that, you’re going to see an even more significant increase. The good news is that, at least at this particular point, there’s no supply disruption. There’s still plenty of fuel available, plenty of fuel in the system. We’re not looking at this point at any kind of a shortage situation or anything like that.”
P&CMA is a trade group comprising members who own, operate, or supply more than 3,250 convenience stores across the state.
Fletcher continued, “The retail price of gasoline is obviously a component of what the spot market wholesale price is, and with the uncertainty in the Middle East right now, that price has been driven up a little bit.”
“We hope that we’ll come to a quick resolution of some sort. At least, if not a total resolution, some stability, and we’ll see things level off rather quickly,” Fletcher said. “In the short run, folks are going to see a minor increase in the retail price of gasoline based on the increase that we’ve seen in the wholesale prices.”
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