Gas prices are climbing again. See the states where it is the most and least expensive.
Gas prices have surged past $4 a gallon as the Iran conflict pushes oil higher, raising fresh concerns about inflation.
The average cost of a gallon of regular gas in the United States has surpassed the $4 mark, according to AAA. Rising tensions in the Middle East have been keeping oil prices high since March. A recent analysis suggests that the steep increase in gas prices is contributing to retail shocks, which may negatively impact small businesses.
The national average price for a gallon of regular gas climbed to $4.28 on Thursday, a 6-cent increase in 24 hours and a 13-cent jump over the past two days. This represents a $1.08 increase per gallon compared to the same time last year.
The price surge coincides with the ongoing six-month conflict between the US and Iran. Recent attacks by US forces on Iranian oil tankers and Iranian retaliation against ships and a US base in Jordan have intensified the situation. Additionally, Iran-backed Houthi rebels have targeted Saudi oil facilities and threatened shipping in the Red Sea, further straining a market already affected by the near-shutdown of shipping through the Strait of Hormuz. This narrow waterway previously handled about 20% of the world's oil before the war.
Brent crude, the global oil benchmark, has risen above $100 per barrel, though it is still below its April wartime peak of $126.41. As a result, drivers across the country are experiencing higher gas prices. California currently has the highest average regular-gas price at $5.89 per gallon, while Indiana has the lowest at $3.56.
Diesel, a crucial expense for trucking and freight, has reached a record national average of $5.94 per gallon, exacerbating inflation beyond the cost of gas. Retail analyst Carol Spieckerman warns that the consequences of higher gas prices are extensive and often underestimated, leading to increased costs for airline tickets, groceries, and petroleum-based products, which small businesses find particularly challenging to handle.
For small retailers operating in a single market, higher gas prices translate to fewer shopping trips and more cautious spending among customers. In contrast, larger retailers like Walmart, which offer convenient one-stop shopping and delivery services, may benefit from the situation. Amazon, which eliminates the need for travel altogether, is likely to gain further market share. For now, Americans are once again facing the well-known reality of higher costs, from the checkout line to the gas pump.
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