A recent surge in gas prices has been seen across the U.S. after a temporary period of calm. The national regular gasoline price has hit $4.53 a gallon, as per AAA, marking a significant rise over the past two days. This spike is due to the prevailing Iran conflict which has triggered a rise in oil prices. From February 28, when the conflict started, the national gas price has jumped from $2.98 to a peak of $4.56 on May 7, the highest recorded in nearly four years.
Despite this, just before the conflict erupted, the average price per gallon was stable in the $2 range, offering some reprieve for drivers. However, gas prices are known to be volatile during geopolitical shocks, as evidenced by a brief surge to over $5 per gallon in June 2022 following Russia’s invasion of Ukraine.
The burden on drivers is significant. The average vehicle is currently costing about $75 more per month to fuel since the onset of the Iran conflict. The impact is felt even more in two-vehicle households and states with higher gas prices. Currently, every state averages at least $4 per gallon. The highest being California at $6.15 while other states like Washington, Hawaii, Oregon, Alaska, Nevada, and Illinois range between $5.08-$5.77.
The varied gas prices between states are due to differing fuel taxes, supply networks, and environmental regulations. Also, states farther from refineries or those with stricter fuel standards often have a higher pump price. On average, a vehicle travelled 11,071 miles in 2024, equating to roughly 48 gallons of gas per month. Considering the current average price of $4.53 per gallon, the estimated monthly cost for one vehicle is about $217. Therefore, households with two vehicles might have to bear an additional cost of around $150 per month, or $1,800 annually.