Gas in U.S. hits $4 a gallon for first time since August 2022
The average price of a gallon of gasoline in the United States topped $4 a gallon Tuesday for the first time in more than three years, according to AAA, the latest sign of how the Iranian War drives up fuel prices for American motorists. The average price was $4.018 per gallon, AAA said, up from $3.990 Monday.
Gas prices have jumped from the United States and Israel attacked Iran on February 28jumping more than a dollar per gallon over the past month, according to auto club data.
President Trump has suggested the war could end soon. In a potential sign of progress, Pakistan has indicated that it welcome talks between the United States and Iran in the “coming days”.
At the same time, the United States has expanded its special operations forces in the Middle East and Mr. Trump is now renewing threats to strike Iranian power plants and other civilian infrastructure if a deal is not reached.
In this uncertain context, American gas prices finally exceeded $4 after remaining just below this threshold for several consecutive days.
The last time gasoline was above $4 per gallon was in August 2022. Prices briefly exceeded $5 per gallon in June of that year after Russia’s invasion of Ukraine caused crude oil prices to rise.
“It’s not the $5 shock, but motorists are really going to start seeing these numbers increase relatively quickly compared to the dollar price at the pump,” Patrick De Haan, a petroleum expert at GasBuddy, told CBS News.
Since 2009, gasoline has spent just 157 days – all during 2022 – above $4 a gallon, according to De Haan.
A CBS News Poll published March 22, reveals that rising gas prices are increasing concerns about the U.S. economy. In the short term, 90% of respondents expect the war in Iran to drive up oil and gas prices, while 58% say fuel costs are likely to increase in the long term.
Drivers are also noticing the local impact, with 85% reporting higher prices in their area, according to a survey of 3,335 U.S. adults surveyed March 17-20.
Diesel price also rose again, reaching $5.454 a gallon on Tuesday, up from $5.416 on Monday. The fuel is commonly used in agriculture and construction, as well as in trucks, trains and ships that transport U.S. goods.
As transportation costs rise due to rising energy prices, companies could eventually shift some of the burden to customers, Diane Swonk, chief economist at KPMG, said recently. told CBS News.
The Trump administration has pulled several levers to try to control energy prices, such as release oil of its strategic reserve and relax government regulations this can drive up the cost of petroleum products.
However, analysts told CBS News These measures alone are not enough to close the energy supply gap or lower prices for Americans.
