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Gas prices in Anchorage, AK: $4.35 a gallon! Why are gas prices in Alaska higher than those in the lower 48?

The oil comes from here: shouldn't the gas prices be lower?

If I want cheap corn, I'd go to Iowa. If I want cheap potatoes, I'd go to Idaho. If I wanted cheap apples or oranges, I'd go to Washington and Florida respectively. With every other item you can buy, it is cheaper where it is grown or produced. Why doesn't gas follow these very simple and easy to understand laws of economics?

3 Answers

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  • 1 decade ago
    Favorite Answer

    Are there any gasoline refineries in Alaska? If not, there's your answer.

    The oil may be collected in Alaska, but it isn't refined there. Your gasoline has to be shipped a long way before it ends up at your favorite service station.

  • 1 decade ago

    I think because of shipping because if you buy food or go out to eat its still really expensive even more expensive in Alaska. But you guys have oil wells but i think the government/president are doing it on purpose for more money but. All Alaskan crude oil is required by US Congressional law to be sold and delivered to the US only. Alaskan crude is priced and delivered to Los Angeles and sometimes refineries in Seattle. the price of gasoline in Anchorage Alaska is based on the same cost of crude used in LA. That is why it is so high here. Although the state government of Alaska now has a $10 Billion dollar surplus thanks to the high oil prices people who live in Alaska and use oil for transportation and heating are going bankrupt.

    Damn I thought it was high in Minnesota $3.59

  • 1 decade ago

    The same reason gasoline is expensive in Hawaii..It cost money to ship stuff to Alaska and Hawaii.

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