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A large storm in Alaska has caused more than just inconvenience, it’s also causing high gas prices. Prices for a gallon of gas have reached $5.98 per gallon and jet fuel is at $6.77 a gallon. Fuel is usually delivered via barge, but due to the storm, passage to Nome, Alaska, is iced-in. The last barge that was transporting 1.6 million gallons of gas and diesel never made it to port. The next barge is not supposed to arrive until June. That leaves only air delivery via jet, but with the rise in jet fuel prices, that’s going to become even more expensive over time

Getting Fuel to Nome

Even flying fuel in does not automatically solve the problem as drivers will need to queue up to in a never-ending line stretching 24 hours around the clock at the airport. This logistical nightmare will not only cause more problems, but will also impact the price of gas upwards. Officials are warning that an increase of $3 to $4, on top of the already high price, is not out of the range of possibility. That would leave Nome, Alaska, with one of the highest gas prices in the nation, topping out at over $9 a gallon.

The Good and Bad News

Residents of Nome, Alaska can be happy that there are no fuel shortages, even with the long winter season upon them. It will take at least three months before the present supplies start to run low. That’s the good news. The bad news is that the prices will continue to climb and residents will be forced to either curtail their use or spend more for basic transportation as a matter of simple economics. Other emergency services like ambulances and snow plows won’t have an option to reduce service and will end up bearing the full brunt of the cost, unless there is some sort of governmental relief. It is still not clear whether the full cost hike will be passed on to the consumer or handled in some other way so as to keep Nome, Alaska, operating without further distress.