Iran war: How US consumers spent an extra $100 billion on fuel

US households have spent an estimated $100 billion more on petrol and diesel in the six months since the US-Israel war on Iran began on Feb. 28. That amounts to roughly $763 per household, based on an estimated 131 million households.

Petrol accounts for most of the additional cost because Americans use much more of it than diesel. Its price climbed 39%, from about $2.98 to $4.15 per gallon. Diesel rose by more than 60%, from $3.67 to $5.90 per gallon.

Fuel prices differ sharply across the country. California recorded the highest average petrol price at $5.85 per gallon, followed by Washington state at $5.51, Hawaii at $5.39, Alaska at $5.03, and Oregon at $5.01, according to the American Automobile Association. Indiana had the lowest average price, at $3.43 per gallon.

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If they rise, they rise.

The war has proved unpopular in the United States, and a majority of Americans blame President Donald Trump for the increase in fuel prices. Trump dismissed concerns about rising costs in an interview with Reuters, saying, “If they rise, they rise.” He has instead accused oil companies of “price gouging.”

Trump had predicted that the war would last four to five weeks. It has entered its sixth month, with no diplomatic breakthrough in sight.

Higher oil prices also spread through the food chain. They affect fertiliser and tractor fuel on farms, refrigeration and insulation in storage, plastic packaging, and truck fuel for transport. Those costs accumulate across production, storage, packaging, and delivery before reaching consumers. In lower-income countries, where people spend more of their income on food and many countries import grain and fertiliser, the increase could quickly contribute to food shortages.

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price gouging