EL PASO, Texas (KFOX14\/CBS4) \u2014 EL PASO, Texas (KFOX14\/CBS4) – Rising fuel prices are continuing to squeeze drivers and small businesses across El Paso, as the average cost of both regular gasoline and diesel continues to climb.<\/p>\n
According to AAA, the average price of regular gasoline in El Paso is about $3.90 per gallon, while diesel has climbed to more than $5.00 per gallon.<\/p>\n
To better understand what’s driving the recent increase, KFOX14 spoke with UTEP economist Tom Fullerton, who says a combination of global conflicts and strong energy demand is pushing prices higher.<\/p>\n
“The urban geography of El Paso is so fractured that anytime gasoline and diesel prices go up, it damages disposable incomes available to households and reduces operating margins and profit margins for businesses,” Fullerton said.<\/p>\n
He said the current spike is tied in part to disruptions in global oil markets.<\/p>\n
“The demand for energy is high,” Fullerton said. “Supply chains are being disrupted by the wars between Ukraine and Russia and between the United States and Iran.”<\/p>\n
According to Fullerton, recent hostilities involving Iran and ongoing attacks affecting shipping routes in the Red Sea have contributed to uncertainty in global oil supplies, putting upward pressure on fuel prices.<\/p>\n
Before tensions in the Middle East escalated earlier this year, regular gasoline in El Paso was selling for under $3.00 per gallon..<\/p>\n
Today, drivers are paying nearly a dollar more on average.<\/p>\n
Local roofing company feeling the impact<\/p>\n
For family-owned A&J Roofing, higher fuel prices have quickly become one of the company’s biggest operating expenses.<\/p>\n
Co-owner Yvette Maldonado said the company now spends between $180 and $190 to fill one of its diesel trucks, but that fuel only lasts a few days.<\/p>\n
“By the two-week mark, we’re spending over $500 in just gas on one truck,” Maldonado said. “We’re easily over the thousands monthly in gas alone.”<\/p>\n
To reduce expenses, Maldonado said she’s started using her personal vehicle whenever possible, saving the company’s diesel trucks for larger roofing jobs.<\/p>\n
“I’ve had to resort to driving my personal vehicle in order to save a little bit more,” she said.<\/p>\n
Despite the added costs, Maldonado said the company is trying to avoid passing those expenses on to customers.<\/p>\n
Instead, A&J Roofing continues to offer free estimates while absorbing much of the increased fuel cost.<\/p>\n
“We’ve definitely tried not to,” Maldonado said. “Sometimes we’re just eating up costs. We offer free estimates. We’re still eating up that cost of gas.”<\/p>\n
She said finding the balance between keeping prices affordable and covering rising expenses has become increasingly difficult.<\/p>\n
“We are trying to find something affordable and a middle ground,” Maldonado said. “But the challenge is definitely there.”<\/p>\n
Higher fuel prices can ripple through the economy.<\/p>\n
Fullerton said higher fuel costs affect much more than what drivers pay at the pump.<\/p>\n
As transportation and shipping costs increase, he said consumers can also expect higher prices for groceries, construction materials and other everyday goods.<\/p>\n
“Whenever fuel costs go up this much, it always affects transportation prices first,” Fullerton said. “We can expect grocery prices and convenience store prices to go up as a consequence of the higher diesel prices.”<\/p>\n
He said households in El Paso may have less disposable income to spend on entertainment, restaurants and other discretionary purchases, while businesses face higher operating costs.<\/p>\n
Looking ahead, Fullerton said fuel prices are likely to remain near current levels as long as global uncertainty continues.<\/p>\n
He said if geopolitical tensions ease, drivers could see gasoline prices fall by 10 to 15 cents per gallon relatively quickly. Until then, he expects elevated fuel costs to continue affecting both consumers and businesses.<\/p>\n
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