Highlights
- Arizona's average regular gasoline price hit $4.57 per gallon, nearly a dollar above last year's level.
- Saudi Arabia shut a major pipeline after a drone attack attributed to Iranian-backed militants in Iraq, disrupting roughly 4 million barrels per day.
- AAA spokesperson Doug Johnson says each station sets its own price, with margins averaging about 10 cents per gallon, per American Petroleum Institute data.
- Seasonal transition to cheaper winter-blend fuel typically trims prices, but analysts warn geopolitical instability could offset that relief.
Arizona drivers are paying an average of $4.57 per gallon for regular gasoline, nearly a dollar more than this time last year, after Saudi Arabia shut down a major oil pipeline following a drone attack attributed to Iranian-backed militants in Iraq, AZFamily reported Tuesday. The pipeline carries nearly 5% of the world's oil supply. The shutdown was corroborated by The Guardian and the BBC.
The disruption compounds broader regional tensions, including conflict surrounding the Strait of Hormuz, that have already been shaking energy markets.
At the intersection of Bethany Home Road and Seventh Avenue in Phoenix, two stations less than 200 feet apart post prices that differ by more than 20 cents per gallon. AAA spokesperson Doug Johnson explained the gap: "Each individual gas station sets their own prices. Sometimes you get these corporations that run the numbers, figure it out, and use complex mathematical formulas to set prices. Then you have mom-and-pop stores setting prices based on what they think they should be charging."
Timing in the supply chain also matters. "Some gas stations may have bought this fuel way back when it was much cheaper," Johnson said. "Maybe not a year ago, but if they bought it six months ago, it would have been much cheaper than it is today."
Data from the American Petroleum Institute shows net profit margins on gasoline sales average roughly 10 cents per gallon. For many operators, fuel functions primarily as a loss leader to draw foot traffic into convenience stores, where margins on merchandise and food run higher.
AAA reports refiners are currently transitioning from summer-blend fuel to less expensive winter blends, a shift that typically trims a few cents off retail prices. Industry analysts warn, however, that ongoing geopolitical instability in key oil-producing corridors could quickly counteract that seasonal relief.
Sources
Every factual claim in this article traces to one of the sources below. See how we work for the editorial process.
- AZ Family (3TV/CBS5) retrieved 15/09/2026 23:53
- theguardian.com retrieved 15/09/2026 23:53
- bbc.com retrieved 15/09/2026 23:53
Authored by The Scottsdale Signal. Drafted by AI from primary-source material under our beat-specific editorial guides; reviewed by humans before publish under our five-gate process. Sources retrieved at 15/09/2026 23:53. Every claim traces to a source.
