A Record Jump in U.S. Gasoline Prices Is Squeezing Consumers
The New York Times • • business
Key Points:
- The price of regular gasoline in the U.S. surged 25% from February to March, marking the highest monthly percentage increase on record, rising from $2.91 to $3.64 per gallon.
- This spike surpasses the increase seen after Russia's 2022 invasion of Ukraine and is linked to the ongoing U.S.-Israeli conflict with Iran, which has driven crude oil prices up nearly 50%.
- The Energy Information Administration forecasts gasoline prices to peak near $4.30 per gallon in April, with an average annual cost of $3.70.
- The conflict threatens oil supply routes, particularly the Strait of Hormuz, through which 20% of the world's oil passes, raising risk perceptions among oil companies.
- Higher gasoline prices contribute to inflation risks and economic challenges, with the Federal Reserve maintaining high interest rates to counter inflation, potentially amplifying negative economic impacts compared to past oil shocks.
