Current gasoline prices highest since 2014

Local News

RIO GRANDE VALLEY, Texas (ValleyCentral) — Current gas prices are at their highest since 2014 with current prices averaging at $3.00 per gallon.

In November 2020, gas prices averaged at $1.75 a gallon. The price has since spiked 70% in 12 months and 6% more than in October.

UTRGV Economics Associate Professor Salvador Contreras told ValleyCentral the main reason for this influx is that the Motor Fuel Tax Revenue helps finance transportation infrastructure.

Gas is taxed 20 cents per gallon in addition to the federal government taxing 18 cents per gallon in Texas, according to Contreras.

Each gas station is able to negotiate the price they charge though depending on its location and how large the station is. If the gas station is located on a busier intersection, the price will be much higher than if in a more obscure location.

Rio Grande Valley resident, Sandra Ramirez said the price is still too high for her family’s budget. She has had to limit where her family commutes and what food they can buy.

For international traveler Santos Sanchez, the cost of gas was not something he planned for.

Sanchez and his friend purchased a car to travel from Houston to Honduras because they thought it would be cheaper than shipping it on a boat, but the pricing is not that different and has “impacted us a lot.”

Contreras added there is an overwhelming amount of federal governmental support for the increase in gas prices, so he expects them to stay and increase over the next several months.

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