The reason for high fuel costs in AK is because of shipping. The only refinery in AK is in Valdez, and that one only refines diesel/jet fuel for the military. Oil gets shipped down to WA/OR/CA, refined, and shipped back. It's pretty ironic to be filling up your car/truck/bike in Valdez and looking over at the oil terminal. Giant tankers lining up to fill up with oil, and you are two miles away paying 3 times the price of gasoline in the lower 48. Living in Cordova was even worse for prices. On the plus side, natural gas was dirt cheap when I lived in Anchorage, which made the heating bill bearable. There are some things I miss about living in AK, high prices aren't among them.