El Paso gas prices climb above Texas, national averages

EL PASO, TEXAS (KFOX14/CBS4) — El Paso gas prices have climbed above both the Texas and national averages after rising sharply over the past week.

According to AAA, the average price for a gallon of regular gas in El Paso is now $4.01. That is about 13 cents higher than the national average of $3.88 and more than 50 cents higher than the Texas average of $3.45.

El Paso’s average has increased nearly 10 cents in the past 24 hours and about 45 cents in the past week.

At one gas station along Montana Avenue in East El Paso, regular gas was listed at $4.24 a gallon Friday, the highest price KFOX14 found while checking stations across the city.

Jordan Salas reports on El Paso gas prices climb above Texas, national averages (Credit: KFOX14)

Drivers said the sudden increase has been noticeable.

“It’s pretty crazy to be honest, because all of a sudden gas prices just went up,” one driver said.

Another driver said he was surprised to learn El Paso’s average had moved above the national average.

“It’s insanity to me. You know?” he said.

UTEP economics professor Tom Fullerton said it is unusual for El Paso’s average to rise above the national average. He said a combination of local supply issues and changes in the global oil market may be contributing to the increase.

“Usually when it happens, it’s because of a temporary inventory shortage here in El Paso relative to the amount of gasoline that’s available nationally,” Fullerton said. “So what’s happened over the last few days is we’ve got a combination of, see, unexpectedly higher prices due to the military attacks at sea in and around the Persian Gulf, combined with probably what were already low inventory levels.”

Fullerton said low inventory means stations have less gasoline available to sell. Raising prices can slow demand and help stations avoid running out.

“Those low inventories are forcing the retailers to raise their prices to avoid shortages,” Fullerton said. “None of us like to see those yellow plastic bags appear on the gas pump handles.”

He said station owners also want to keep their pumps open because customers who stop for gas often buy food, drinks and other items inside convenience stores.

Fullerton also said prices can vary from one part of the city to another depending on how much traffic a station receives, how much gas it has available and demand in the surrounding area.

Busy stations may see prices rise faster if demand is high and inventory is already low.

Fullerton said El Paso’s distance from other major markets can sometimes make supply problems take longer to correct because replacement gasoline may take longer to reach the region. However, he said there is no clear evidence that geography is the main cause of the current increase.

Despite the recent spike, Fullerton said he does not expect El Paso to remain above the national average for long.

“It can occur, but it very rarely lasts more than four or five days,” Fullerton said.

That would be welcome news for drivers who said the increase is already affecting their budgets.

“I had to pay $40 more just to fill up my tank than, you know, like a couple months ago,” one driver said. “I mean, it’s relieving, and I really hope it does change because it’s getting very crazy.”

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