Gasoline prices topped $4 per litre nationwide on Tuesday, with the national average price at the bowser reaching $4.02, its highest level since August 2022, as reported by AAA data.
This increase coincides with the US-Iran conflict entering its fifth week, resulting in gas prices rising by an average of about $1 from a month ago, with most of those gains occurring since the onset of the Middle East crisis.
Figures from GasBuddy reveal that the national average petrol price hit $4.018 per litre, marking its highest level in almost four years and the largest monthly increase on record.
Global oil prices for international Brent crude (BZ=F) and US West Texas Intermediate crude (CL=F) have surged by approximately 50% each over the past month since the conflict began. Futures for these energy products were trading around $107.80 per barrel and $102 per barrel, respectively.
On March 25, the Trump administration eased federal ethanol restrictions by issuing an emergency waiver for E15 petrol, aiming to enhance the supply of a more affordable fuel blend before the warmer weather driving period. Additionally, the White House granted a temporary 60-day waiver on the “Jones Act” regulations that increase domestic shipping costs.
Despite these measures, gas prices have not significantly decreased across the nation. While consumers have faced higher fuel costs in recent weeks, truckers have been hit even harder, with the national average price for diesel reaching $5.45 per litre on Tuesday, also representing a record monthly increase.
Strategists caution that oil prices – and consequently, prices for refined products like petrol, diesel, and aviation fuel – could continue to rise if the conflict persists. Analysts at Goldman Sachs have raised their Brent forecast for April from $85 to $115, anticipating a longer disruption supporting a risk premium. Meanwhile, Saudi Arabian officials estimate Brent could reach $180 if the conflict extends through April, and analysts at Macquarie suggest that Brent could surpass $200 if the conflict lasts until June.
Ines Ferre, a senior business reporter for Yahoo Finance, and Jake Conley, a breaking news reporter covering US equities for Yahoo Finance, provide insights on the situation.
(Source: Yahoo Finance)
