Gas prices jump across Nebraska as global tensions impact oil market

NORFOLK, Neb.— A lot of Americans are experiencing sticker shock at the gas pump lately, and according to AAA here in Nebraska, the average price has gone up from $2.88 to over $3 per gallon in just a week. This is affecting more than just your wallet, it’s also affecting the way local gas stations are filling their pumps.

And while drivers might see those numbers climbing and wonder why, local gas station owners say it’s not because they’re trying to take advantage of customers.

“It’s like it’s not price gouging. It’s just trying to keep ahead of the market so we don’t lose margin and be selling our product for like making nothing on it,” Operations Manager of Prime Stop Matthew Albers said.

Albers said lately the market has been moving so quickly that prices can even change while suppliers are picking up fuel for the day.

“We usually get our pricing first thing in the morning, so we know that, OK, it’s going to cost us X today pulling this product out of the terminal. Well, here lately, they’ll be waiting in line at the terminal and the prices will change when they’re sitting there. So I’m like, OK, so what am I paying for this today,” Albers said.

Analysts say tensions in Iran around a major oil shipping route, are part of what’s pushing prices higher right now.

“The main reason that we are seeing price point increases happens to be with a Strait of Hormuz. And even though America doesn’t get hardly any Middle Eastern oil anymore, we are dealing with a globally exchanged product, that being crude oil. So the exchanges are all in a global market,” Petroleum Analyst with GasBuddy Matt McClain said.

Because oil is traded globally, changes in the market can still show up at local pumps, sometimes with a delay.

“So the trickle-down effect, what we see is that price point moving toward the gas stations. There’s always a slight delay between every layer. When you go from the crude oil price point at a higher price point, then the gasoline slowly raises. When the wholesale gasoline price slowly raises, then you start seeing the aftermath of that price increase at the local pumps whenever you’re driving by,” McClain said.

For drivers filling up, the hope is simple, that prices don’t keep climbing.

“It’s a headache. Hopefully it comes down sooner or it’s gonna go, hopefully it don’t hit $5,” a Prime Stop patron Ross Daniel said.

Analysts say while oil prices have dipped slightly in recent days, it may still take some time before drivers see that reflected at the pump.