El Paso regular gas jumps 37 cents in a week, averaging $4.34 a gallon

EL PASO, TEXAS (KFOX14/CBS4) — El Paso drivers are feeling a sharp spike in gas prices, with the city’s average now edging above the national average after a steep jump over the past week.

AAA reported the average price for a gallon of regular unleaded in El Paso is about $4.34, up nearly 37 cents in one week from $3.98. That puts El Paso just above the U.S. average of $4.33 and 49 cents higher than the Texas statewide average of $3.86.

At some gas stations across El Paso, drivers are paying even more. Fred Richman said, “I mean, it sucks. What else can I tell you? It’s going to affect everyone as far as deciding how much they can spend on food, how much they can spend on pleasantries, how much they can spend on anything.”

Another driver, Brian, said the rising costs are hitting his wallet even with a smaller vehicle. “I spent around $60… and it’s a four cylinder, 13 gallons. I shouldn’t be spending this much, you know?” he said.

UTEP economics and finance professor Tom Fullerton said one of the key factors to watch is the price of crude oil, noting that El Paso gas prices tend to move with West Texas Intermediate, a benchmark for much of the oil produced in the region.

“Whenever West Texas Intermediate goes up by $1, that causes gasoline in El Paso to increase by 3 cents,” Fullerton said.

Jordan Salas reports on El Paso regular gas jumps 37 cents in a week, averaging $4.34 a gallon (Credit: KFOX14)

Fullerton said West Texas Intermediate is now around $105 a barrel, and he expects regular gas in El Paso to remain above $4 a gallon with pressure on oil prices from the war involving Iran, supply disruptions and strong demand.

“Right now we’re in a period of strong economic growth, which means that the demand for oil and oil products is very high and it’s keeping prices higher than they otherwise would be,” he said.

Diesel prices are even higher. AAA said diesel in El Paso reached a record high Tuesday at about $6.11 a gallon.

Fullerton said the increases are unlikely to ease soon. “Prices have already increased. They’re unlikely to decrease in the near future. This is going to affect household budgets. It’s also going to affect the operating margins of businesses throughout El Paso,” he said.

Some drivers said they have limited options to cut back. Brian said he commutes to Las Cruces for college and is filling up every couple of days. “I feel kind of like my hands are curled behind my back, really, because I can’t really do much about it,” he said.

Clay, a student in El Paso, said he has started taking the bus about three days a week instead of driving to school. “I think the bus might be my full-time limo from now on,” he said.

Fullerton said relief will likely depend on crude oil prices coming down, but for now he expects gas prices to stay high.

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