If you remember hearing phrases in commercials during the Biden administration such as “he saved at the pump” or “save 10 cents per gallon at Exxon & Mobil,” you may want to take another look.
Amid strikes on Iran by the U.S. and Israel that began on Feb. 28, Americans have noticed their gas prices rising again. While the U.S. does not generally import oil from Iran and has maintained heavy restrictions since the Iranian Revolution of 1979, Iran is estimated to have approximately 4% of the world’s oil supply.
Whenever a large supply of oil decreases in production or is cut off, the prices can change faster than you realize.
“Oil, no matter where it comes from, is priced largely on global supply and demand,” wrote Emmett Lindner, a business reporter in a recent New York Times article. “Prices can change quickly when supply is cut off by wars or weather, or if demand rises or falls.” Because of the war, the Strait of Hormuz, located in between the Persian Gulf and the Gulf of Oman, which carries approximately 20% of the world’s oil supplies on ships, has been largely blocked off to traffic. Since the beginning of March, 100 ships are estimated to have passed through the waterway, significantly lower than the average of 138 daily. If there’s less oil available and there’s high demand, prices can rise.
The U.S. is not excluded from this. According to a poll conducted by Reuters/Ipsos, 55% of Americans believe prices have impacted them and 87% expect prices to continue to rise. In an effort to ease the surge, U.S. Treasury Sec. Scott Bessent announced on Friday that the U.S. will lift sanctions on Iranian oil imports for 30 days.
“At present, sanctioned Iranian oil is being hoarded by China on the cheap,” said Bessent in a post on X. “By temporarily unlocking this existing supply for the world, the United States will quickly bring approximately 140 million barrels of oil to global markets, expanding the amount of worldwide energy and helping to relieve the temporary pressures on supply caused by Iran.”
Amid price hikes, Conn. Gov. Ned Lamont proposed a temporary suspension of the state’s gas tax to try alleviating drivers. Lamont’s proposal would save drivers 25 cents per gallon, and 49 cents per gallon if the diesel tax was also suspended. Despite this, the proposal has not secured firm support among lawmakers. Some accuse Lamont of not having a solid plan and others want to fold the proposal into other budget bills and proposals. House Speaker Matt Ritter claimed that a vote on such a proposal may not occur until April, but others think it could take until May. Average estimates in the state have shown that prices a month ago were at about $2.90 a gallon to now about $3.76 a gallon.
Commuters and students with cars on campus have also noticed the price increases. Krish Patel, a computer science junior and commuter said, “There were three gas stations that I passed by, one of them is actually my uncle’s and about two weeks ago it was about $2, $2.50 which is not bad, but now it’s $3.60, $3.70 it’s an expensive hurt especially with the car that I drive, it’s got a big engine so it drinks a lot of gas.”
Melanie Blood, a forensic science sophomore who has a car on campus said, “Before I left for break there was a gas station around here that was about $2.80 a gallon and I really like going there, and when I got to Massachusetts the prices were way higher like every single gas station I saw were above $3. Then when I got back, the gas station that I usually run to was at like $3 per gallon; it was really bad.”
