Expert cites multiple issues for Phoenix-area gas shortages

PHOENIX — One expert says the ongoing shortage of gasoline at Phoenix-area Circle K and Fry’s Food Store gas stations is likely due to problems in the supply chain.

“Well there certainly have been some mine refinery issues in California. Some of those refineries supply the Phoenix market with fuels and other areas of Arizona,” Patrick DeHaan, head of petroleum analysis at Gas Buddy, told KTAR News 92.3 FM on Tuesday.

“There’s also another problem — a lot of the ethanol that is blended into gasoline that comes from the Midwest is roadblocked due to some of the flooding that is ongoing there.”

DeHaan said typically refineries sell unbranded gas for lower prices than branded gas (like Shell and Exxon), but in Phoenix the market is currently inverted.

“And in the market that we’re having, because of some of these refinery kinks, the price of that unbranded fuel is significantly more expensive than some of that branded fuel,” he said.

DeHaan said it’s possible that the affected gas stations or their suppliers have chosen not to pay the premium.

He said the fact that Arizona uses a unique summer blend of gasoline that is different than California’s also adds complexity to the issue.

“There’s about a dozen different types of this so-called summer gasoline, and when there are refinery kinks, it really can lead to some areas that see tighter supply than others,” he said.

DeHaan said the best thing people can do is only use the gas they need and wait out the cycle.

“The market will eventually turn back to normal. I do not think that this is going to be a widespread problem,” he said.

“There’s no reason to be panicked at this point.”

A spokesman for the Arizona Department of Agriculture told KTAR News on Monday that the fuel shortage issues are limited to “certain retailers.”

“Production and transportation of fuel into the Arizona marketplace is fully operational at this time,” Robert Smook said in an email.

“We have been aware through sources that certain retailers are currently experiencing fuel supply issues, however, this is not affecting all retailers.”

Fry’s spokeswoman Pam Giannonatti said in a Monday statement to KTAR News 92.3 FM that the outage was due to the “market supply and distribution challenges” in Phoenix.

Circle K said in a statement that the shortage was due to a “perfect storm” of unforeseen circumstances, including issues with pipeline, refinery supply source and ethanol distribution.

KTAR News 92.3 FM’s Taylor Kinnerup, Joe Huizenga, Ashley Flood, Martha Maurer and Griselda Zetino contributed to this report. 

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