Kathmandu. The average price of gasoline in the U.S. has surpassed $4 a gallon, the first time since 2022, as fuel prices soar around the world due to the war with Iran.

According to the Motor Club, the average price of petrol is now $4.02, which is more than a dollar increase from before the war began. The last time such a price was seen was in 2022 after the war in Ukraine.

Prices vary from state to state, due to supply, tax rates and local conditions.

Crude oil prices have risen sharply since the United States and Israel launched a joint war against Iran on February 28. Prices have been affected due to supply disruptions from major producing countries in the Middle East.

Likely to affect the economy

The increase in petrol prices has affected both consumers and businesses. As daily expenses increase, people may have to cut back on spending in other areas.

With the increase in transportation cost, the price of food, electricity and other daily essentials is also likely to increase. According to a recent survey, about 45 percent of Americans are worried about their ability to afford gasoline.

Impact on Transportation and Service Sector

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The transportation sector has also been affected due to the high cost of fuel. The Postal Service has proposed to temporarily levy an additional 8 percent charge on some services.

The price of diesel has also increased significantly, which has added to the burden of goods transporting vehicles.

World Supply Crisis

The supply crisis has deepened as a key sea route that transports nearly a fifth of the world’s oil has been blocked. Attacks between Iran, the US and Israel have damaged oil and gas infrastructure.

Attempt to use repository

In an effort to bring down prices, the International Energy Agency (IEA) has decided to release 400 million barrels of oil from member states’ emergency reserves.

The United States has partially waived sanctions to ease some oil supplies from Venezuela and Russia.

Future state

Analysts say petrol prices could rise further if the war prolongs. Also, with the onset of the summer season, demand will increase, which will put additional pressure on prices.