Fuel prices to increase next week in Nome

Gas prices at the pump and heating oil costs are set to increase next week. While prices per gallon of diesel and gas fuel are not quite set yet, Bonanza Fuel CEO Scot Henderson said that Bonanza's costs this year compared to last year average about $1.50/gallon higher for heating oil and $0.75/gallon more for gasoline. These are not the final cost increases of cost per gallon for the customers as added taxes and federal and state surcharges are levied on top.
With the arrival of Bonanza’s first fuel barge of the season this coming weekend, Bonanza anticipates retail pricing adjustments to occur shortly after delivery is completed, he said. 
As a result of the U.S. – Iranian war, oil tanker traffic through the vital Strait of Hormuz was disrupted and impacted the transport of oil destined for mostly Asia. Henderson said that Bonanza’s fuel suppliers historically have sourced fuel from refineries in Asia.  “However, due to the conflict in the Middle East and the disruption of oil tanker traffic in the Strait of Hormuz earlier this year, Bonanza’s fuel supplier is purchasing fuel inventory from domestic and Canadian refineries,” Henderson said.
Asked about increased consumption of fuel in Nome due to various construction projects and hauling operations, Henderson said that “Bonanza is working closely with the supplier to ensure we have sufficient fuel quantities available this year to meet our customer's needs.”
The supplier, he said, does not anticipate any fuel shortages and Bonanza expects another fuel delivery this fall.

Editor's Note: This story was updated to make clear that the final prices per gallon are not set yet.