The average US household has incurred an additional $763 in fuel costs over the past six months, attributed to rising fuel prices linked to the ongoing US-Israel conflict involving Iran, which began on February 28. According to a tracker from Brown University’s Watson Institute for International and Public Affairs, US consumers have collectively spent an extra $100 billion on petrol and diesel during this period.
The additional cost translates to approximately $763 per household, based on an estimated 131 million households across the country. The conflict has faced criticism in the US, with many Americans attributing the increase in fuel prices to President Donald Trump. In a Reuters interview, Trump acknowledged the rising prices but suggested that they are a result of oil companies engaging in "price gouging."
Trump previously estimated that the conflict would last four to five weeks; however, it has now extended into its sixth month without a diplomatic resolution.
Petrol prices have seen a significant increase of 39%, rising from about $2.98 to $4.15 per gallon ($0.79 to $1.09 per litre), while diesel prices have surged more than 60%, from $3.67 to $5.90 per gallon ($0.97 to $1.56 per litre).
Fuel prices vary considerably across states, with California experiencing the highest average petrol price at $5.85 per gallon ($1.55 per litre), followed by Washington state at $5.51, Hawaii at $5.39, Alaska at $5.03, and Oregon at $5.01. Conversely, Indiana has the lowest petrol price at an average of $3.43 per gallon ($0.91 per litre).
Rising oil prices have broader implications, affecting various sectors, including agriculture and food production. Increased costs in oil and gas impact every stage of the supply chain, from production and storage to packaging and delivery. Consequently, these costs are ultimately passed on to consumers, resulting in higher prices at supermarkets.
In lower-income countries, where a larger portion of earnings is spent on food and significant quantities of grain and fertilizer are imported, escalating oil prices could lead to food shortages.