Components of Alaska Fuel Costs: An Analysis of the Market Factors and Characteristics that Influence Rural Fuel Prices

Abstract

Many Alaskans face extremely high, volatile fuel prices. Little is publicly known about the actual structure of Alaska’s rural fuel markets and what drives prices at the community level. The Alaska State Senate Finance Committee asked economists at the University of Alaska Anchorage, Institute of Social and Economic Research (ISER) to investigate rural Alaska fuel markets and identify policy options that could be considered for legislative action to reduce fuel prices. This study is both an update and an evolution of previous ISER Components of Fuel Costs studies.1 It does not include road-accessible communities.