Gas Prices Surge to Year-High Levels in Nevada: What’s Behind the Spike

Nevada – Gas prices in the Silver State have reached their highest point of the year and show no signs of slowing down. According to AAA, the current average for a gallon of regular gasoline in Nevada stands at a staggering $5.06. This represents a significant increase of 60 cents from just a month ago and a 32-cent surge within a week. Nevada now holds the unenviable position of having the second-highest gas prices among all 50 states, trailing only behind California, which also happens to be the primary source of gas for Southern Nevada.

The price hike is particularly perplexing as it defies the typical trend of lower fuel costs during the fall season. “This is the time we should be getting a break, right? We are used to more expensive prices in the summer, and prices usually ease in the fall,” remarked John Treanor, the spokesperson for AAA Nevada.

While the statewide average for a gallon of gas has breached the $5 mark, several gas stations in the Vegas Valley are charging even higher prices, with rates as steep as $5.29 at Arroyo Grande and American Pacific and $5.36 on Magic Way near Boulder Highway.

Gas prices in Nevada have experienced a consistent and upward trajectory for over a month now, leaving consumers with little relief in sight. One of the key factors contributing to Nevada’s gas price surge is the state’s limited domestic gas production, with the majority of its supply being imported from neighboring states like Utah and, primarily, California.

“Gas from Southern California really fuels Southern Nevada right now,” added Treanor. In California, the gas price situation is even more dire, with the average nearing $6 a gallon due to ongoing refinery issues. Refineries in both the Bay Area and Los Angeles have experienced disruptions, with a refinery in Torrance temporarily shutting down several gasoline-producing units for maintenance.

The decrease in California’s refinery capacity, down by 9.5% since 2020, is expected to worsen by the end of the year when Phillips 66 closes its Bay Area refinery.

On a national scale, adverse weather conditions during the summer, including extreme heat across the country and hurricane season, have pushed gas prices higher. Additionally, global supply issues are impacting gas prices as the price of crude oil globally has exceeded $90, a notable increase.

Despite the current gas price woes, Treanor assures consumers that prices will eventually come down. “That decline will happen. There is a light at the end of the tunnel. We just don’t know how long this tunnel is,” he noted.

Although Nevada has surpassed the $5 mark, gas prices are still below the all-time high of $5.68 recorded in June 2022. As consumers grapple with these elevated costs, the hope remains that gas prices will follow their usual cyclical pattern and ease in the coming months.

Credits: Fox 5 Vegas