$9 a Gallon Gasoline in the United States?: You Betcha in McGrath, Alaska

Residents of McGrath, Alaska, recently dealt with what may be highest amount ever paid at the gas pump for gasoline. Gasoline hit $9.22 a gallon recently when barges couldn’t get through on the rivers due to their low levels. It resulted in Crowley Maritime, the supplier of gasoline for the small Alaskan town, to raise prices by more than $3 a gallon overnight.

Crowley claims the price increase was due to the fact they had to fly gasoline into the little town. However, the mayor said they discovered while flying increased the cost to shop the gas to McGrath, the $3 price increase was not justified. The mayor arranged for gasoline to be flown in from Fairbanks, which was a farther distance than where Crowley was bringing it in from. The cost was $5.82 a gallon for the mayor.

Of course, Alaska residents should take note. If Obama’s cap and trade bill passes the Senate, the lower 48 will experience similar gas prices, which means the cost of gasoline in Alaska could head up to $9 or more a gallon, and there won’t be anything you can do about it.