Retail gasoline and diesel prices in the US increased sharply last week as conflicts in the Middle East disrupted the global energy supply chain. This increase appeared in the context of rising world crude oil prices and continued pressure on fuel demand.
As of March 6 US time, the average gasoline price in the US reached 3.32 USD per gallon (0.88 USD per liter), up 11% compared to the previous week and the highest level since September 2024, according to data from the American Automobile Association (AAA). The average diesel price reached 4.33 USD per gallon (1.14 USD per liter), up 15% compared to the previous week and also the highest level since November 2023.
Some areas in the Midwest and South of the United States recorded the strongest increase since the conflict with Iran occurred. In Georgia, the average retail gasoline price increased by 40.1 cents per gallon last week, according to fuel price tracking site GasBuddy. Indiana and West Virginia also witnessed increases of 44.3 cents and 43.9 cents per gallon respectively.
Ms. Andrenna McDaniel, a health insurance worker at South Fulton, Georgia, said she was surprised when gasoline prices skyrocketed overnight. According to her, the fuel price increased too quickly, forcing her to limit driving and only move when really necessary. She said she felt lucky to be able to work at home.
Tensions in the Middle East along with the paralysis of the important oil and gas transport route, the Strait of Hormuz, have increased demand for US oil in the international market. This has also increased the costs of oil refineries in the US.
Closing the session on March 6, two key crude oils in the world both exceeded the 90 USD per barrel mark. Brent oil price increased by 8.5% to 92.7 USD per barrel, while US WTI crude oil increased by 12.2% to 90.9 USD per barrel. In total for the week, Brent oil price increased by 35%.
US President Donald Trump once pledged to lower energy prices and promote oil and gas exploitation in his second term. The US is currently the world's largest oil producer, and also the leading oil exporter and consumer.
In an interview on March 5, Mr. Trump said he was not too concerned about the increase in gasoline prices due to the conflict in the Middle East. According to him, the top priority now is military campaign.
Analysts believe that price pressure may continue. Mr. Patrick De Haan, an analyst at GasBuddy, said that in the current market conditions, the national average gasoline price could reach 3.5-3.7 USD per gallon if crude oil prices continue to rise and supply disruptions persist.
Besides geopolitical factors, the market is also affected by seasonal factors. Gasoline prices usually increase in spring and peak in summer due to increased consumption demand, while the production of mixed gasoline for summer is more expensive.
Global diesel inventories are also low due to high demand for heating and electricity generation as winters linger in the US and many other regions. Oil refining capacity shortages further strain supply. As diesel prices increase, the cost of many items from food to furniture also tends to increase, because this fuel is widely used in freight transport, manufacturing, agriculture and global shipping.
