Alaska’s soaring cost of living is emerging as another major obstacle for Trump-backed Republican Senator Dan Sullivan as he seeks re-election.
With grocery, gasoline and diesel prices climbing across the Last Frontier, Democratic challenger Mary Peltola has seized on the economic pressure to target the Republican incumbent.
In late August, a store in Shungnak, a village in northwest Alaska, drew national attention after listing regular gasoline at an astonishing $26.82 per gallon.
“Just yesterday, the price was $13.99, but now it is 26.82,” Douglas told the Alaska Beacon.
“This price does reflect the highest cost for gasoline in the region … for now,” she later wrote on Facebook. “Unfortunately, prices for gasoline and diesel are expected to increase once communities receive their fall barge deliveries.”
The eye-watering figure quickly became a focal point, and Peltola’s campaign began pressing the cost-of-living issue with even greater force.
The Alaska Native candidate now frequently shares images showing the steep prices residents face for basic household goods.
Earlier this month, she posted photos from a rural Alaska grocery store showing 12 rolls of paper towels priced at up to $40.99 and a package of paper plates selling for $53.99.

Incumbent Dan Sullivan (right) and Democrat Mary Peltola (left) are competing for one of Alaska’s most closely watched Senate seats


Surging gas and grocery prices have become central issues in the Senate race. In late August, a village in northwest Alaska made headlines after regular gasoline reached $26.82 per gallon. Source: @GlendaRoseFacebook (left) and @MaryPeltola/Facebook (right)

Peltola’s campaign has increasingly focused on the rising cost of living in the Last Frontier, linking it to Trump’s war against Iran. Source: @MaryPeltola/Facebook
The post also showed Tide pods priced at $50.49 and declared: “This is as bad as it’s ever been. This is what the price-hiking war in Iran is costing Alaskans. Dan Sullivan has now voted for it 14 times.”
On Wednesday, Peltola shared additional photos of a gas pump with a sticker depicting Dan Sullivan pointing toward a $100 charge for roughly 15.5 gallons. The sticker read: “I did that.”
The state’s punishing prices have sparked outrage online and become a defining issue in one of the nation’s most closely watched midterm contests.
According to the Bureau of Labor Statistics, grocery prices in Alaska are nearly 24 percent higher than the national average.
AAA, which tracks gas prices nationally and locally, reported that the average diesel price in Alaska rose more than 61 percent over the past year, while regular gasoline increased by nearly 30 percent.
The high cost of daily life also took center stage during the candidates’ final debate.
Reporter Wil Courtney noted that heating fuel in rural Alaska had climbed to an average of $8 per gallon before asking both candidates how they would address the problem.

During their final US Senate debate, both Peltola and Sullivan said they support Trump’s recently announced 800-mile gas pipeline in the Last Frontier

Peltola’s campaign released striking images of grocery prices, including $40.99 for paper towels and $50.49 for Tide pods. Source: @MaryPeltola/Facebook

Tide pots were being sold for more than $50. Source: @MaryPeltola/Facebook
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How should leaders fix Alaska’s soaring prices before more families are forced to leave their homes?
Sullivan acknowledged the ‘huge issue that is hurting people across the state’ and lashed out against policymaking from the Biden administration.
He also emphasized that the recently announced 800-mile liquefied natural gas (LNG) pipeline would help produce ‘more Alaska energy for Alaskans’ and mentioned his collaboration with president Trump on an Alaska Energy Taskforce to assist low income homes with energy benefits.
Peltola emphasized that she also supports the LNG pipeline and the energy cost assistance program for low income households but said: ‘we need to go so far beyond.’
The Democrat added that Alaskans are ‘living paycheck-to-paycheck and even moving to the Lower 48’ and that she aims to eliminate income tax for lower and middle class Alaskans, and cap out-of-pocket prescription drug costs.
She further recalled talking to people in Alaska’s Northwest who told her they are paying ‘$1,500 a month just for their electricity’ and once again doubled down on blaming Sullivan for the impacts of the ongoing war in Iran.
A campaign spokesperson also told Our News Outlet that Peltola wants to pass the Expanded Child Tax Credit to provide parents with $3,600 annually per child under age six and $3,000 for children six to 17.
The costs of Trump’s Middle East war have turned into a midterm nightmare and snarled Republican campaigns in the entire country, with voters blaming the federal government for their financial struggles.
Our News Outlet contacted Sullivan’s press secretary for comment.