Ethan Taylor Maldonado/THE RIDER GRAPHIC
Gas prices around the Rio Grande Valley have climbed in recent weeks following the outbreak of conflict involving Iran, with local averages rising more than 40 cents in just one week.
According to AAA Texas’ fuel prices website, the average price of gasoline in the Valley, regular unleaded, averaged $3.38 per gallon as of March 12, up from $2.98 per gallon March 5.
Daniel Armbruster, spokesperson for AAA Texas, said the region has seen a rapid increase compared with recent months.
“In the last week, that is a difference of 41 cents,” Armbruster said. “When you compare it to a month ago, it’s about 70 cents higher.”
The Texas statewide average reached $3.25 per gallon, while the national average climbed to $3.58 per gallon, according to AAA Texas.
Armbruster said the increase is closely tied to rising crude oil prices following tensions in the Middle East.
“Crude oil is the main ingredient in gasoline,” he said. “Usually, what you see is when crude oil prices increase, it affects retail gasoline prices.”
Armbruster said West Texas Intermediate crude oil was trading around $85 per barrel and had recently reached about $95 per barrel as of March 11, compared with around $60 per barrel roughly a month ago.
WTI is a price benchmark for light and sweet oil in the United States, according to the Library of Congress website.
He said instability in the global oil market is largely driven by developments involving Iran, a major player in the global crude market.
“If there’s any blockage or disruption there, it sends a ripple effect through the entire global market for crude oil,” Armbruster said.
Maroula Khraiche, a UTRGV associate professor of economics, said the situation reflects basic supply-and-demand dynamics.
“They are the supply side,” Khraiche said. “When there’s less of something, the price is going to go up.”
She said the Strait of Hormuz, a narrow shipping route connecting the Persian Gulf to global markets, plays a key role in the global oil supply.
“A good chunk of ships go through the Strait of Hormuz,” Khraiche said, adding that disruptions to shipping routes can limit global oil supply. “When supply decreases, and demand stays the same, people compete for what is left, and prices go up.”
She said the current situation has drawn comparisons to earlier global energy crises.
“This reminds us of the 1970s oil crises,” Khraiche said.
She added higher energy prices could also affect the broader economy.
“The most alarming issue about this for the United States economy is that we were struggling with inflation,” Khraiche said. “Now, we’re going to see oil prices going up, and that might compromise future inflation numbers.”
Miguel Medina, an integrated health science junior, said he has noticed gas prices rising while filling up his car in recent weeks.
“I remember when gas used to be like $2 or $2.50,” Medina said. “Then, I saw it go to $3.11, then $3.19, and recently it was like $3.39.”
He said the higher prices have affected his spending, noting he usually fills up once or twice a week, and he recently paid about $30 for gas instead of the $20 he was used to paying.
Due to the higher costs, Medina said he now tries to drive less unless he needs to go to work or run essential errands.
Armbruster added drivers can take steps to improve fuel efficiency, including maintaining properly inflated tires, avoiding aggressive driving and removing unnecessary weight from their vehicles.
He said the future direction of gas prices will depend largely on how global oil markets react to ongoing developments.
