Gas prices continue to climb steadily in the wake of President Trump’s mercurial war against Iran, and as of this week, Massachusetts drivers are losing $10 million dollars a day to higher gas prices.
Average retail gasoline and diesel prices in Massachusetts have surged by roughly 50 percent since February, according to data from the Energy Information Administration.
According to state fuel tax collection data, Massachusetts drivers typically burn about 6.6 million gallons of gasoline a day at this time of year, with daily consumption increasing to around 7 million gallons per day in the summer months.
Compared to this winter, when gas was $1.50 cheaper per gallon, the state’s drivers are now spending roughly $10 million more every day on higher gas prices caused by the war in Iran.
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Total gasoline expenditures in Massachusetts are now roughly $30 million per day on fossil fuels – more than four times the daily total cost of operating the entire MBTA system.*
Even with these higher prices, gasoline costs are still a relatively small portion of the total costs of driving, which also include the unpaid labor costs of sitting behind the wheel, repair costs, debt payments, insurance, plus the social costs of pollution, traffic violence, and congestion.
The war in Iran has blockaded virtually all traffic through the Strait of Hormuz, a critical channel for roughly 15 percent of the entire planet’s oil supply. The closure of the strait has prompted shortages and rising prices throughout the world, and most analysts expect that the longer it remains a war zone, the higher prices will climb.
*The MBTA’s total budgeted operating expenses for fiscal year 2026 are $2.683 billion, which works out to $7.35 million per day.