National average gasoline price rises more than 55 cents per gallon since late February amid concerns about global energy supply disruptions.
By yourNEWS Media Newsroom
Gasoline prices across the United States have risen sharply since the outbreak of the Iran war, climbing more than 55 cents per gallon in less than two weeks as global oil markets react to fears of supply disruptions.
The nationwide average price for regular gasoline reached $3.539 per gallon as of March 10, up from about $2.98 on Feb. 28, according to fuel price data cited in a report by MarketWatch.
The increase follows a surge in crude oil prices triggered by escalating military strikes across the Middle East. During the recent market volatility, oil briefly traded above $100 per barrel as investors reacted to the risk of disruptions to global energy supplies.
Energy analysts say the speed of the price increase has been unusual.
“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 rise ranks among the fastest weekly gasoline price increases recorded in more than two decades of fuel market data.
Wholesale fuel costs have increased rapidly alongside oil prices, and analysts say gas stations are continuing to pass those higher costs along to consumers.
De Haan said the spike in oil prices came sooner than expected as tensions escalated in the region.
“Oil prices did rise beyond the $100 mark sooner than I thought,” he said, adding that he had hoped there would be “a tangible and cohesive plan to execute on for the Strait of Hormuz that obviously has not happened.”
The Strait of Hormuz is one of the world’s most critical oil shipping routes, carrying a significant share of global petroleum exports. Concerns about potential disruptions there have added volatility to energy markets.
Analysts warn that gasoline prices may continue climbing in the coming days as retailers adjust to higher wholesale costs.
GasBuddy estimates that prices in many states could rise another 20 to 50 cents per gallon during the coming week, potentially pushing the national average close to $3.70. If crude oil prices remain elevated, prices could approach $4 per gallon in some areas.
Price increases have been especially pronounced in California, where fuel costs are typically higher than the national average.
The average price of regular gasoline in California currently stands at about $5.29 per gallon, according to AAA, making it the most expensive state for gasoline and roughly $1.75 higher than the national average.
In some areas, prices have climbed far higher. Reports from Los Angeles indicate at least one gas station posted a price of $8.21 per gallon.
California’s fuel market tends to experience larger price swings due to a combination of higher state fuel taxes, specialized environmental fuel blends required under state regulations, and limited refining capacity.
Energy analysts say that if the conflict in the Middle East continues, gasoline prices could remain volatile.
“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 often influence consumer behavior more directly than many other economic indicators because drivers see the price changes regularly.
“At $4 a gallon, the consumer starts to figure out how to use less gasoline,” said Andy Lipow, president of Lipow Oil Associates.
Lipow said motorists often respond to higher prices by reducing discretionary travel, combining errands, or carpooling.
Research on fuel markets suggests drivers become more sensitive to gasoline costs once prices exceed the levels they have recently grown accustomed to paying.
“We’re definitely in that territory,” said Clemson University economist Matthew Lewis. “Now drivers are paying attention.”
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