Here’s Why, in Nome, It’s Still $5.72 a Gallon

Gas prices in downtown Nome, February 2015

Lower gas prices have been making headlines across the USA, but not so in our neck of the woods.

Our supporters may be interested to know that, because of the manner in which rural Alaska distributors obtain gasoline and diesel, our gas prices are immune (temporarily, at least) from the recent plummets in the cost of a barrel of crude oil. At one Nome station, a mere three blocks from KNOM studios, gas prices (as pictured) haven’t changed much in recent years; a gallon of unleaded gasoline stands at $5.72, with a gallon of diesel at $6.34. (Per-gallon prices are even higher in many of the satellite communities we serve.)

As reported recently by first-year KNOM news reporter Francesca Fenzi, the reason why our gas is so costly — and why our gas prices remain high while they’re falling for the rest of the country — is that rural Alaska communities purchase gasoline in bulk in the summertime, when large-scale gas delivery is possible via ocean barge. (As you’ll read here, our coasts are surrounded by ice in the wintertime.)

Since Nome’s current stock of gas has already been purchased, our prices won’t change at the earliest (if at all) until summer, with our next bulk arrival of gas from the Lower 48. Until then, it’s $5.72 a gallon.


4 Comments

  1. Ramon Gandia on March 6, 2015 at 9:44 pm

    All true. But if prices increase in the lower 48, they raise them here because “we need to have the money to buy the fuel at the
    higher price come summer.” They shouldn’t be able to have it both ways, but they always do.



  2. Ron on March 7, 2015 at 11:53 am

    Very interesting… thanks for the info update.



  3. Timothy Stettinger on March 11, 2015 at 5:54 pm

    Let’s say I bought some gold at 1500 dollars an ounce last year, this year
    (hypothetically), it’s 750 dollars an ounce, can I sell it at last years price so I don’t lose any money?



    • Timothy Stettinger on March 11, 2015 at 6:00 pm

      If you say that they can sell it for what ever they want because there is no competition then it pretty much seems like a monopoly which is supposed to be illegal but maybe I’m wrong.