Photo Credits: Emily Tyler
As the summer of 2026 approaches, college students and residents in Russellville are feeling a familiar sting at the gas pump. While it might seem strange that a conflict thousands of miles away can change the price on a sign in Arkansas, the reality of the 2026 energy market is that our local economy is deeply woven into a global web. Even though the United States exports more oil than it imports, the prices we pay are tied to the international market.
The primary driver of the current price hike is the instability in the Strait of Hormuz. Because this narrow waterway is a primary artery for the world’s energy supply, any friction there sends ripples across the globe.
“Since oil is bought and sold on a global market, local refineries have to pay these higher global prices to get the crude oil they need to make gasoline,” said Economics professor, Dr. Masanori Kuroki. “This means that even though the gas we pump in Arkansas is probably domestic, we still pay higher prices that reflect these global supply shocks.”
Nick Chabarria, a spokesperson for American Automobile Association (AAA), notes that crude oil prices make up about 60% of what we pay at the pump. When supply routes are threatened, the cost of that raw material climbs instantly.
“Approximately one-fifth of the world’s crude oil supply traveled through the Strait of Hormuz in route to refineries around the globe,” said Chabarria.
Despite these global pressures, Arkansas drivers are actually seeing some of the lowest prices in the country. While the national average has climbed past $4.11, Arkansas has stayed significantly lower. This isn’t just luck; it’s a combination of geography and policy. Being close to Texas, the nation’s largest oil producer, keeps transportation costs down. Additionally, the state’s tax structure plays a massive role in keeping our prices from hitting the levels seen on the West Coast.
However, we shouldn’t expect local production to suddenly surge and save the day. Melony Martinez, Chief of Communications for the Arkansas Department of Energy and Environment, points out that Arkansas’s oil and gas fields are “mature,” meaning they have been in use for a long time and follow a natural decline.
“There has been no significant increase in drilling permits or production activity at this time,” Martinez said. “It is important to understand that oil and gas resources, absent some circumstance that is intended to increase production, are declining resources — their production is somewhere along what is known as a decline curve.”
This means that for the rest of 2026, the price of your commute will likely depend more on international diplomacy than on local drilling.
Dr. Kuroki remains cautiously optimistic that prices will eventually stabilize, though he notes that the summer travel season usually brings its own “seasonal price hike” that can make things feel even more expensive.
AAA suggests that students take small, practical steps to protect their budgets. Simple habits like maintaining proper tire pressure, removing extra weight from the trunk, and avoiding aggressive stop-and-go driving can significantly improve fuel economy.
With summer travel on the horizon and overseas conflicts ongoing, the era of unpredictable energy costs likely isn’t over. However, by focusing on fuel efficiency and smart planning, Arkansas drivers can at least put the brakes on rising personal expenses.
