Global Tensions Are Causing Gas Prices To Rise In Iowa
In a report yesterday looking at the impacts of the Russian invasion of Ukraine, I referenced how diesel fuel will be impacted due to supply chain and transportation disruptions.
With that being said, Iowa has already started seeing the impacts that it’s having on gas prices. Meredith Mitts, a Triple-A Iowa spokesperson said in a KJAN article, that the price of a barrel of oil went up causing this increase.
“Oil went up five to seven dollars a barrel which is roughly a six percent increase and that translates into a ten to 15 cent increase at the gas pump,” said Mitts.
On Thursday, oil prices hovered around the $100 mark, which is the highest it’s been since 2014.
“It's a little too early to tell how long this is going to last,” said Mitts. “It's going to depend heavily on the geopolitical tensions and how this conflict impacts the supply in an already tight market.”
But, Mitt adds, oil prices are key.
“Gas prices will change accordingly with the change in the price of oil,” said Mitts.
And she said that the supply of gas in Iowa is not causing these price shifts.
"That's not a reason to rush out to the pumps or to go and try to fill up and store up on this -- because we shouldn't see much impact on our supply," Mitts says.
On Thursday, gas in Iowa averaged at $3.35, a two cents increase from last week. Mitt says this is also 70 cents higher than a year ago.