Russia’s war against Ukraine is pushing crude oil prices up. Higher prices will be especially deeply felt by people in rural Alaska, who already pay far more for fuel and food.
Companies and communities that buy fuel in bulk could be locked into a higher fuel price for the rest of the year.
“Dramatically, in an instant. It’ll be like flicking the light switch after the barge comes in,” Poston said.recent federal banPoston says Vitus will purchase fuel for its first fuel barge shipment to Western Alaska soon. And as fuel prices trend upwards, Poston said customers will be locked in at a higher rate. That’s because many local companies buy from Vitus in bulk, so what they pay up front is the price they’re locked into for the rest of the year.
And Poston said the price hikes won’t just be at the pump. Higher fuel prices also mean more expensive barging and shipping.
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