The average cost of a gallon of unleaded gasoline rose to $3.15 in Lampasas County as spring break began, and the conflict between the United States and the Iranian regime entered its second week.
Middle East volatility caused the price of oil to surge over $90 per barrel, according to Forbes.com, and Texas – like much of the nation – saw a price increase at the pump after a nearly 11-month trend of decreasing prices.
AAA Fuel Report showed an even more dramatic rise in diesel prices, about 29% in one week, across the Lone Star State -- from $3.295 to $4.253 a gallon.
The statewide average for unleaded gasoline increased from $2.597 to $3.079 from Feb. 28 to March 7. Across the country, a gallon of unleaded jumped from $2.983 to $3.251 in that time.
“Springtime typically sees higher gas prices as gasoline demand rises and summer-blend gasoline production begins,” AAA’s weekly report stated. However, it still drew comparisons to another major conflict that affected global markets. “The last time the national average made a similar weekly jump was back in March of 2022 during the start of the Russia/Ukraine conflict.”
Texas often ranks near the lowest-five states in fuel prices, but it had the 13th highest as of Saturday.
According to the Permian Basin Petroleum Association, West Texas produces half of the United States’ oil, roughly six million barrels per day. But while domestic production has made the nation less reliant on imports, the global market is heavily affected by shipping costs, and investors are wary as they wait to see how long a conflict lasts.
“What I’m seeing going into any kind of price changes right now is threats to the Straits of Hormuz that are causing tankers to have to go around Africa instead of go through the strait,” PBPA Executive Vice President Stephen Robertson said. “And so that greatly impacts the markets, and that’s going to increase costs.”
