Americans Spent Eye-Popping Amount On Fuel During Iran War
Americans shelled out more than $100 billion in additional fuel costs since the Iran war began as soaring gasoline and diesel prices increasingly squeezed household budgets.
Americans shelled out more than $100 billion in additional fuel costs since the Iran war began as soaring gasoline and diesel prices increasingly squeezed household budgets.
U.S. consumers spent more than $100 billion extra on gasoline and diesel as of Sept. 7 compared with what they would have paid without the war, according to a study from Brown University’s Climate Solutions Lab. The burden averaged more than $750 per household even before another surge in oil and diesel prices during the following week.
Brown’s tracker compared actual retail fuel prices since the war began Feb. 28 with an estimate of where prices would have been without the conflict, using data from AAA and the U.S. Energy Information Administration. The researchers then combined the price difference with fuel consumption data to estimate the cumulative cost to consumers.
The estimated tab climbed to roughly $107 billion, including $59 billion in additional gasoline spending and approximately $48 billion in diesel costs, The Wall Street Journal reported Tuesday.
Americans had relatively little savings cushion to absorb higher prices. The personal saving rate stood at just 3% in July, while Americans saved $712 billion at an annualized rate, according to the Bureau of Economic Analysis.
Oil markets faced renewed pressure as disruptions across the Middle East restricted supplies. Brent crude settled at $108.75 per barrel Tuesday after crude loadings at Saudi Arabia’s Yanbu hub were halted and some shipments to Europe were canceled, Reuters reported.
Prices eased Wednesday after Saudi Arabia offered additional crude exports through Oman, though Brent remained above $107 per barrel and diesel markets remained strained.
Diesel fuels much of the nation’s trucking, agricultural and construction equipment, meaning higher prices can reach consumers indirectly through transportation and production costs. The national diesel average reached an all-time high of $6.23 per gallon this week, according to AAA.
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