Supply chain experts foresee Ukranian crisis to impact gas, grocery prices

Gas price already beginning to rise
Published: Feb. 24, 2022 at 5:57 PM MST
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TUCSON, Ariz. (KOLD News 13) - Impacts of the Ukrainian crisis may soon be felt here in the U.S. Supply chain experts expect sanctions on Russia to spark a rise in costs on everything from groceries to gasoline. Some Tucsonans are already noticing a difference.

“My bike would get filled up with $11 but now it’s like $15,” said Carlos Gracia, as he purchased gas.

Overnight gas prices have shot up. AAA is reporting gas cost about $3.56 per gallon in Tucson on Wednesday and by Thursday prices averaged around $3.61. Supply chain expert Ken Gyure from the Univeristy of Arizona said the sanctions will likely surge prices further first hitting Europe and then trickling into the United States.

“I don’t think it’s going to take very long,” he said. “I mean look at energy just lately it was already on a steep increase.”

He warns when the price of oil rises, it tends to impact everything else. Ukraine is known as the “bread basket” of Europe with wheat being its main export and therefore Russia’s invasion may also hit the food supply chain.

“You’re going to really start to see an impact on people’s buying power and you just worry about the long-term business impact on how that might start to play out,” Gyure said.

With inflation, supply chain issues and now the impact of sanctions, some Tucsonans are voicing concern about what the future may hold.

“Everything is going up and it’s gonna get worse. Gas plus groceries and everything you’re going to have to get two jobs in order to survive at some point,” said Mario Sedano, while buying gas Thursday.

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