Louisiana Gas Prices Edge Up as Overseas Tensions Rattle Oil

Louisiana drivers are seeing prices creep higher, and the reason is not a mystery. It starts with crude oil, and right now crude is reacting to the growing conflict involving Iran.  As of the time of this writing, I stopped this morning on the way in to work and paid $2.99 for regular.

Louisiana Oil and Gas Association President Mike Moncla told KEEL News on Monday that the big worry is how long the situation lasts: “If this gets drug out, we could see oil prices go into the $100 range.”

What’s Pushing Louisiana Gas Prices Higher

Moncla noted oil was “right from $72 today,” with a near-term ceiling that “could get up to $80.” That matters because crude oil is the biggest ingredient in what you pay at the pump. When crude jumps, wholesalers and distributors adjust, and stations follow.

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Louisiana has an advantage compared to many states because of our refining footprint. That does not make us immune, though. If global supply fears push oil up, the whole market moves together.

Why Price Changes Don't Hit the Pump Immediately

People often expect gas prices to move the same day oil moves.  Moncla pushed back on that, saying, “It takes a little while for those things to get to the gas pump.” Fuel already sitting in a storage tank was bought earlier, and that supply has to work through the system before the next higher priced batch becomes the new normal.

That lag can be frustrating, especially when prices rise fast. Drivers often notice the jump long before they notice any drop.

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When asked about how a station can raise prices when no fuel truck has shown up,  Moncla agreed it “doesn’t make much sense,” and the point is fair. Stations price based on what it will cost to replace their fuel, not just what they paid for the fuel already in the ground. Taxes and distribution costs also stay in the mix, regardless of how full the tank is.

A Louisiana Gas Prices Reality Check

Even with the bumps,  Moncla  reminded listeners gasoline is still relatively cheap compared with other everyday basics. He put it in plain language: “Don’t go try to fill your tank with milk.”

Oil headlines will keep driving the conversation this week. If the conflict cools, prices can steady. If it stretches out,  Moncla's warning about $100 oil becomes the scenario drivers start feeling more often.