Pennsylvanians should brace themselves for higher prices at the pump as the attacks on Iran are raising crude oil prices.
Regular gasoline was selling for $3.12 a gallon Monday across Pennsylvania, up slightly from last month according to the AAA fuel price tracker. Monday’s national average was about $3 a gallon, compared with $2.94 a week ago.
Oil prices had already risen nearly 17 percent this year amid rising tensions between President Donald Trump and the Iranian regime.
A seasonal shift in production to summer-blend gasoline, which has pricier additives to reduce evaporation, and increased demand as spring break season kicks off, are contributing to the increase, according to AAA.
Patrick De Haan, an analyst for the GasBuddy price-tracking service, wrote on X that he expects to see more gas stations increase their prices. The average price in the Philadelphia metro region Monday was $3.02 a gallon. In Pittsburgh, it was $3.23 a gallon.
For every $1 increase in crude oil prices, gas prices go up about 2.5 cents per gallon, showing how closely crude oil and consumer spending are tied, NBC News reported. According to that report, jumps of 13 cents a gallon at the pump could be on the horizon.
Despite Iran’s oil output being less than 5 percent of global production (mostly going to China due to U.S. sanctions), its influence over the Strait of Hormuz is significant. The strait is a crucial passageway for more than 20 percent of the world’s daily oil demand, and any closure or restriction there would swiftly and severely impact the global oil market, industry analyst Andy Lipow told NBC.
The Associated Press contributed reporting,