Alaska produces about 477,000 barrels of crude oil a day. Yet in Western Alaska, where diesel is the main fuel for heating homes, much of the supply is refined in Asia and spends more than a month at sea before it arrives.
That supply line runs through the Strait of Hormuz, which is why the war with Iran has hit Alaskans so hard. About 80% of the oil that normally passes through the strait is bound for Asia, and Asian refineries supply much of the fuel for more than 160 Western Alaska communities. Rural villages may get only one delivery a season, so prices don’t reset until the next shipment arrives. Fuel vendors warned prices could jump 50%, and the Alaska Chadux̂ Network, a tanker and fuel-distribution trade group, said a supply gap remains a credible risk. The Northwest Arctic Borough’s energy manager, Ingemar Mathiasson, put it bluntly: “We’re looking at, maybe, a survival scenario for rural Alaska.” Closer to the road system, Alaska pump prices have run more than 50 cents above the national average and about a dollar higher than a year ago.
The costs don’t stop at the fuel tank. Alaska Marine Lines, Matson and TOTE Maritime, three of the state’s main shippers, all raised their fuel surcharges. Alaska Marine Lines went from 11% to 18.5%. Those surcharges end up in the price of everything on the shelf.
Alaska Senator Dan Sullivan supported the Iran strikes. He has also voted 12 times against War Powers Resolutions that would have limited the conflict, on March 4, March 18, March 24, April 15, April 22, April 30, May 13, May 19, June 16, June 23, July 23 and July 30. His explanation, after the first of those votes, was a matter of presidential authority: “I have always voted to provide the president of either party authority, broad authority, under Article II of the Constitution.”
Fuel is only the newest pressure. Sullivan has backed President Trump’s tariffs from the start. Shortly after the 2024 election, he said Trump had been transparent during the campaign about using tariffs as leverage over other countries. On Fox Business he said, “…I’m going to use these tariffs with regard to Mexico and China to get them to finally focus on stop poisoning Americans.” After he voted to support the Canada tariffs, his office said the senator doesn’t believe the president intends to keep these tariffs in place forever.
Alaska businesses aren’t waiting for forever. A survey of about 100 businesses by the Alaska Small Business Development Center, taken in April 2025, found that 70% of small businesses with suppliers said their costs had risen because of tariffs.
Sullivan stands behind his support for both the war and the tariffs. Alaskans are still paying for both.
