Global Gas Prices Soar Amid Middle East Conflicts
Global gas prices have surged to an average of $5.89 per gallon due to disruptions in oil supply, according to Global Petrol Prices. This marks a jump of around $1 from late February, before the war in Iran and subsequent strikes on Israel escalated global energy markets.
In comparison, US drivers are paying an average of $4.28 per gallon as of Thursday, up $1.30 from February 28, according to the American Automobile Association (AAA). This increase adds a significant financial burden for American consumers, with Patrick De Haan estimating they pay around $377 million more per day due to higher gas prices.
The global average is nearly $2 below what it was in 2022, when Russia invaded Ukraine and disrupted oil supplies. However, even if the Strait of Hormuz reopens, which would likely happen after an end to the conflict between the US and Iran, gas prices may not decrease significantly as quickly.
The global price disparity is evident with some countries paying extremely low prices due to government subsidies or domestic production. Libya, for instance, has prices as low as $0.09 per gallon, while Hong Kong pays around 170 times that amount at $15.892 per gallon.