How close is Idaho to setting a new gas price record? We asked an expert
With gas prices soaring nationwide, filling up your tank in Idaho can be a real pain in the wallet.
The cost of a gallon of regular gas has hovered around $4.30 a gallon across Idaho for at least a week, according to AAA.
Gas prices started climbing in late February due to the Iran war, and experts say they’re unlikely to drop anytime soon.
Here’s what to know before you fuel up:
Could Idaho gas prices hit a record high?
As of Thursday, a gallon of regular gasoline in Idaho cost about $4.32 on average, about 30 cents higher than the nationwide average, according to AAA.
The Gem State ranked eighth in the nation in terms of fuel costs, the automobile association said.
Idaho recorded its highest-ever prices for regular gas in July 2022.
Back then, gas in Idaho cost $5.25 per gallon on average, AAA said.
“We’re still in better shape than we were during the Russian invasion of Ukraine,” AAA Idaho public affairs director Matthew Conde told the Idaho Statesman via phone.
According to Conde, the price of gas in Idaho remained above $5 a gallon through the start of that conflict. Although Russian forces still occupy Ukraine, prices eventually dropped to a normal level.
Idaho gas prices were about 90 cents under record levels as of Thursday, but that could change “overnight” as the war in Iran continues, Conde told the Statesman.
How long will it take for fuel costs to drop?
Factors driving up gas prices in Idaho include ongoing conflicts in the Middle East as well as stations’ annual switch to summer-blend fuel.
The Strait of Hormuz remains effectively closed to shipping, halting trade through the maritime port and sending crude oil costs soaring.
Brent crude oil futures have risen higher than $100 a barrel multiple times since the strait was shut down.
“When 20% of the world’s oil supply goes offline, it’s going to drive up the value of everything that’s left,” Conde said, starting a “bidding war.”
If Brent crude oil futures drop back down to $65 to $70 per barrel, Conde said, prices at the pump could also lessen.
However, gas prices in Idaho won’t decrease as fast as they increased, he said.
“There’s going to be demand-side pressure as people start trying to fulfill their summer vacation plans,” he said.
Even if the Strait of Hormuz reopened, Conde said, there would be a “definite lag” in gas prices decreasing.
Refineries still have to buy high-priced oil, process it and sell it, Conde explained, “and they still have to make a profit while they’re doing that. There’s going to be a delayed effect there.”
How much oil does the United States produce?
According to the U.S. Energy Information Administration, the United States is the world’s top oil producer, producing close to 22 million barrels every day. That’s 22% of the global supply.
Nearly half of all oil produced by the United States gets exported to other countries.
The United States consumes a lot of oil as well — roughly 20 million barrels per day.
U.S. companies import close to 8.5 million barrels per day, according to the federal Energy Information Administration.
How can I save money on gas in Idaho?
Want to save money on gas?
“Try to think like a delivery driver,” Conde said. “Make a good route for yourself … (and) really think about being efficient.”
The AAA spokesperson said Idaho drivers should do their best to avoid stop-and-go traffic, take more right turns than left turns and bundle your trips whenever possible.
According to Conde, the price of crude oil affects more than just gas prices.
Shipping costs, food delivery fees and airplane ticket prices are also impacted, he said.
