Gasoline prices in the United States have crossed $4 per gallon for the first time in more than three years, as the markets, reported news agency Reuters.
Data from price tracking service GasBuddy showed that the US national average retail price of gasoline moved past the $4 mark on Monday. The last time prices were at this level was in August 2022, following Russia’s invasion of Ukraine.
The $4 level is often seen as a key psychological point for consumers, as fuel costs directly affect daily spending.
The recent rise in gasoline prices is linked to higher crude oil costs. Oil is a key raw material used to produce gasoline.
According to Reuters, , a major global shipping route for oil. Any disruption in this route affects supply and pushes prices higher worldwide.
Since the start of the conflict at the end of February, US gasoline prices have risen by about $1.06 per gallon, or 36%.
At the same time, U.S. oil futures have also jumped. On Monday, oil prices settled at $102.88 per barrel, up $3.24. Prices also rose sharply in Asian trading after reports that an oil tanker was attacked at a Dubai port.
Higher fuel prices are already affecting household budgets in the United States.
According to a Reuters/Ipsos poll, about 55% of respondents said rising gasoline prices have had at least some impact on their household finances. Among them, 21% said the impact has been significant.
Economists say gasoline prices are closely watched because they are visible to consumers and affect daily expenses.
“The key issue is not simply crude oil itself. It is gasoline, the most visible price in the economy for consumers, and when that price jumps it hits psychology immediately,” Jeremy Siegel, economist at WisdomTree, said in a note, as reported by Reuters.
Analysts say prices may remain high in the near term if oil prices continue to rise.
Raymond James analyst Pavel Molchanov said that wars often lead to sharp increases in gasoline prices. He noted that prices stayed above $4 per gallon for 23 weeks during the 2022 Ukraine crisis.
“A sudden outbreak of war leads to a spike in US gasoline to $4.00 per gallon. That describes the current Iran conflict – and also Russia’s invasion of Ukraine in 2022,” he said, according to Reuters.
However, he added that this crisis may be shorter, and prices could start to ease in the coming weeks.
The U.S. administration has taken some steps to control rising energy prices.
According to Reuters, it has issued a 60-day waiver of the Jones Act, which normally restricts the movement of goods between U.S. ports to American ships. The waiver allows foreign vessels to transport fuel and other goods within the country.
However, industry experts expect this move to have only a limited impact on prices.
Rising fuel costs have also become a concern for policymakers, as they affect inflation and consumer spending.
The Reuters report noted that gasoline prices are one of the most visible indicators of economic pressure for consumers, often shaping public sentiment more quickly than other economic data.
With global tensions still high and oil supply uncertain, gasoline prices are likely to remain sensitive to further developments in the conflict.