US Gas Costs Rise $8.4B Since Iran Conflict

American drivers have paid an additional $8.4 billion for gasoline since the beginning of the conflict involving Iran, according to a new estimate from the Joint Economic Committee’s Democratic minority.

Rising Fuel Prices

The calculation is based on daily average gasoline prices tracked by AAA from February 28 – the date the U.S. and Israel initiated attacks on Iran – through March 31. Data from Edmunds, the Federal Highway Administration, and the Energy Information Administration were also used in the analysis.

The average cost of gas nationwide reached $4.06 per gallon on Wednesday, surpassing $4 for the first time since 2022, as reported by AAA. This increase is significantly impacting drivers across the country.

Impact on Vehicle Owners

Specific Vehicle Costs

  • Toyota RAV4: Filling up now costs $58.26, an increase of $15.02 (35%).
  • Ford F-150: A full tank now costs $144.65, up $37.29.
  • Toyota Camry: Filling a Camry’s tank costs $52.23, an increase of $13.46.

Consumer Spending and Economic Indicators

Despite the higher gas prices in March, credit card data from Navy Federal Credit Union indicates consumers are continuing to spend. However, the Conference Board Consumer Confidence Index, released on March 31, reveals a decrease in Americans planning large purchases in the coming six months.

Heather Long, chief economist at Navy Federal Credit Union, stated, “The strain is starting to show, especially as gas hits $4 a gallon nationwide. It’s almost certainly going to be a muted second quarter for spending and GDP growth as the worst of the inflation shock hits consumers.”

Government Response and Outlook

The White House has stated that the increase in gas prices is temporary. Karoline Leavitt, White House spokeswoman, told CBS News, “When Operation Epic Fury is complete, gas prices will plummet back to the multi-year lows American drivers enjoyed before these short-term disruptions.”

A recent CBS News poll shows rising gas prices are increasing concerns about the U.S. economy. A LendingTree study found that roughly one-third of Americans are already altering their spending or savings habits, with another 35% planning to do so if prices remain high.

Regional Impact

Texas and California have experienced the most significant increases in fuel costs due to their large populations and number of drivers. Texans have paid an additional $1.04 billion, while Californians have paid an extra $970 million since February 28. Florida ($684 million) and North Carolina ($361 million) also saw substantial increases.