Why It Matters
Idaho drivers are paying significantly more at the pump as conflict in the Persian Gulf disrupts global oil markets. The average gallon of regular gasoline reached $4.52 nationwide this week, up from $3.14 one year ago. Even though the United States imports less Middle Eastern crude than it has in four decades, Americans are shouldering costs driven by global commodity trading.
What Happened
Gas prices have climbed steadily since late February when military conflict began restricting traffic through the Strait of Hormuz, a narrow waterway between Oman and Iran. The strait serves as the primary export route for oil produced by Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Iraq, Bahrain and Iran.
Brent crude oil, the global benchmark, jumped from $70.50 per barrel before the conflict to more than $104 per barrel this week. That $34 increase translates to roughly 82 cents more per gallon at retail pumps, according to industry estimates.
Most oil passing through the strait goes to Asian markets rather than the United States. However, disruptions anywhere affect prices everywhere because petroleum trades on global commodity markets, according to the National Association of Convenience Stores.
By The Numbers
$4.52: National average price per gallon of regular gasoline, up from $4.14 one month ago
$6.16: California’s average price per gallon, the nation’s highest
$3.95: Oklahoma’s average price per gallon, the nation’s lowest
51%: Portion of retail gas prices attributed to crude oil costs
20%: Share of global oil supply that previously passed through the Strait of Hormuz
Zoom Out
State-level prices vary dramatically due to differences in taxes, environmental regulations and refinery access. California faces the nation’s highest fuel costs due to a 70.9-cent-per-gallon tax and fee structure, special clean-burning fuel requirements, and reliance on in-state refineries with limited pipeline connections.
Alaska maintains the lowest state tax at 9 cents per gallon. The federal gasoline tax has remained frozen at 18.4 cents per gallon since 1993. President Donald Trump indicated support Monday for maintaining that freeze, though any suspension would require congressional approval.
Consumer prices overall rose 0.9% in March and are averaging 3.3% higher compared to last year. Transportation costs ripple through the broader economy as shipping expenses increase for consumer goods and services.
What’s Next
Industry analysts say pump prices are unlikely to drop quickly even if the strait reopens. Complex global supply chains take time to stabilize after major disruptions. Competition among gas stations may prevent prices from climbing further, as retailers avoid appearing as outliers compared to nearby competitors.
The federal tax freeze proposal faces an uncertain path in Congress, where Republican leaders have previously resisted temporary suspensions of fuel taxes.
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