US Gas Hits $3.54 a Gallon, Up 55¢ Since Iran War Began
Gasoline prices across the United States have climbed sharply since the war with Iran began, increasing by more than 55 cents per gallon over the past two weeks, according to data cited by MarketWatch.
The national average for regular gasoline has risen from roughly $2.98 per gallon on Feb. 28 to $3.539 as of March 10, based on figures compiled by AAA. The rapid increase comes as crude oil prices jumped amid concerns that fighting in the Middle East could disrupt global energy supplies.
Industry analysts say the upward trend may continue as gas stations adjust their prices to reflect rising wholesale fuel costs tied to the surge in oil markets.
“It’s extremely rare to see such a fast-paced increase,” said Patrick De Haan, head of petroleum analysis at GasBuddy, noting that the recent jump ranks among the fastest weekly increases in more than two decades of gasoline price data.
The spike in fuel costs follows a series of escalating military strikes across the Middle East that briefly pushed global oil prices above $100 per barrel, forcing energy markets to react quickly to the possibility of prolonged supply disruptions.
“Oil prices did rise beyond the $100 mark sooner than I thought,” De Haan said, adding he had hoped there would be “a tangible and cohesive plan to execute on for the Strait of Hormuz that obviously has not happened.”
Experts say gasoline prices may continue to rise in the days ahead as fuel retailers pass along higher supply costs to consumers.
GasBuddy projects that prices in many parts of the country could rise another 20 to 50 cents per gallon this week, potentially bringing the nationwide average close to $3.70 and possibly approaching $4 per gallon if crude oil prices remain elevated.
The increase has been particularly dramatic in California.
According to AAA, the average cost of regular gasoline in California is currently about $5.29 per gallon, making it the highest in the nation and nearly $1.75 above the national average.
In some locations, the prices are even more extreme.
Reports from Los Angeles indicate that at least one station has charged as much as $8.21 per gallon, illustrating how quickly retail fuel prices can spike in California’s tightly constrained gasoline market.
Fuel prices in California are typically far higher than in most other states due to several factors, including higher gasoline taxes, specialized environmental fuel requirements, and limited refining capacity, all of which can intensify price swings when global oil markets tighten.
Energy analysts caution that prices could keep rising if the conflict in the Middle East continues.
“The longer the Iran conflict goes on, the more susceptible the market becomes to incredible price spikes,” said Denton Cinquegrana, chief oil analyst at OPIS.
Economists say gasoline prices tend to influence consumer behavior more strongly than many other costs.
“At $4 a gallon, the consumer starts to figure out how to use less gasoline,” said Andy Lipow, president of Lipow Oil Associates, noting that drivers often respond by traveling less, combining errands or carpooling.
Studies show motorists typically begin adjusting their driving habits when gasoline prices exceed the levels they have grown accustomed to over the previous year.
“We’re definitely in that territory,” said Clemson University economist Matthew Lewis. “Now drivers are paying attention.”
{Matzav.com}
