New York: US gas prices jumped past an average of USD 4 a gallon for the first time since 2022 on Tuesday, as the Iran war pushes fuel prices to soar worldwide.
According to the motor club AAA, the national average for a gallon of regular gasoline is now USD 4.02 — over a dollar more expensive than before the war began. The last time US drivers were collectively paying this much at the pump was nearly four years ago, following Russia’s invasion of Ukraine.
The price is a national average, meaning drivers in some states have been paying well over USD 4 a gallon for a while now. Prices vary from state to state due to factors ranging from nearby supply to differing tax rates.
Since the US and Israel launched the joint war against Iran on Feb. 28, the cost of crude oil — the main ingredient in gasoline — has spiked and swung rapidly. That’s because the conflict has caused deep supply chain disruptions and cuts from major oil producers across the Middle East. Both Brent crude, the international standard, and benchmark US crude are now going for more than USD 100 per barrel — up from roughly USD 70 before the war. Motorists around the world are also coping with higher gas prices. In Paris, for example, gas is at 2.34 euros per litre (USD 2.68), which is about USD 10.27 a gallon.
Higher gas prices are impacting consumers and businesses as many households continue to face wider cost-of-living strains. And as drivers pay more to cover necessities like gas or even utility bills impacted by soaring fuel costs, many may be forced to cut their budgets in other places.
“Americans (are) spending hundreds of millions of dollars more on gasoline every day,” said Patrick De Haan,
the head of petroleum analysis at fuel-tracking service GasBuddy. That, he said, has a negative impact on the “psyche of the US consumer,” which carries consequences for the economy overall.
Before launching the war, President Donald Trump bragged about keeping gas prices low. Consumer prices and the cost of living have already become flashpoints in this midterm election year, with Democrats hammering Trump and Republicans as the GOP tries to hold majorities on Capitol Hill. A recent AP-NORC poll found that 45 per cent of US adults
are “extremely” or “very” concerned about being able to afford gas in the next few months, up from 30 per cent shortly after Trump won the 2024 presidential election with promises to lower costs.
Beyond visits to the pump, analysts point to groceries, which have to be restocked frequently and could also see price hikes as businesses’ transportation and packaging costs pile up. Hauling other cargo and packages has also been impacted. The United Postal Service, for example, is seeking a temporary 8 per cent added charge on some of its popular products, including Priority Mail.
US diesel prices — the fuel used for many freight and delivery trucks — are now going for an average of USD 5.45 a gallon, up from about USD 3.76 a gallon before the war began, per AAA.
“It’s going to mean more expensive bills for truckers, tractors and trains that move the US economy with diesel fuel. It’s going to mean consumers are likely greeted by rising grocery prices — and broadly speaking, a rise in US inflation,” said
De Haan.