The Cost of Living in Alaska

In Alaska, oil prices are usually discussed in the context of their impact on state revenue and budgets. With no state sales or income taxes, oil generates the dominant share of what state government spends. But oil prices also have a large effect on consumer prices in a state where heating homes and transporting goods are major expenses. Oil prices shot up above $140 in 2008 before falling back to around $30 later in the same year. That unprecedented volatility affected Alaskans? household expenses in a variety of ways.