As tensions escalate in the Middle East, fuel prices are rapidly rising across the globe. Consequently, the average price of petrol in the US has crossed $4 per gallon for the first time since 2022. According to AAA, the automotive industry association, the national average price for regular petrol is now $4.02 per gallon, compared to approximately $3 per gallon before the conflict. Previously, petrol prices in the US had reached such high levels about four years ago during the Russia-Ukraine war.
Petrol Prices and National Average in the US
In the US, 1 gallon equals 3.785 liters. The national average price recently crossed $4 per gallon, but in some states, people are already paying over $4. The price difference between states is mainly due to tax rates. In terms of Indian currency and measurement, one liter of petrol in the US now costs approximately ₹99.94, whereas before the war started, it was around ₹75 per liter.
Attack on Iran and Impact on Oil Supply
The US and Israel launched military action against Iran on February 28. In response, Iran carried out missile and drone attacks on Israel and also targeted US bases located in the Gulf region. Furthermore, Iran closed the Strait of Hormuz, which is under its control. This severely disrupted global oil supply and led to a sharp increase in crude oil prices in the international market.
Sharp Rise in Diesel Prices
Production cuts by major oil-producing countries in West Asia have further increased pressure on diesel prices. According to AAA, the automotive industry association, the average price of diesel is now $5.45 per gallon (approximately ₹135.50 per liter), whereas before the war started, it was about $3.76 per gallon (₹93.50 per liter).
Diesel is primarily used as fuel for freight and delivery trucks, so the increase in prices is also impacting the transport and logistics sectors.
