During the brief Israeli-Iranian confrontation this past week, gas prices in Massachusetts saw a significant increase. Prices may rise again in conjunction with the next travel weekend, but drivers shouldn’t freak out, according to an expert.
According to AAA Northeast senior spokesperson Mark Schieldrop, the average gas price in the state is $3.09 per gallon, which is 10 cents more than it was nine days ago. In 2024, petrol prices were $3.44 a gallon at the same time.
According to Schieldrop, the difference between this year and last has been the extremely high fuel stocks.
“We have a lot more gasoline in storage that serves our region than we had last year, and it’s pretty close to the five-year average,” he said. For the majority of the spring and early summer, supply was actually exceeding demand because demand had been comparatively weak for the majority of the year.
How international conflicts affect gas
Prices began to rise on June 13 after Israel attacked one of Iran’s nuclear installations, sparking a brief strike exchange in which the United States also participated. A ceasefire between the nations is reportedly anticipated to last, according to reports released on Wednesday.
According to Schieldrop, oil prices, which were previously at $10 a barrel, have returned to their pre-attack levels. It can take some time for this shift to be reflected in gas prices.
“There is less momentum behind the price increases, so we may see prices pretty much level off,” he said, adding that he was unsure if prices would necessarily return to their previous level and that retail prices would forfeit the nine cents they had gained over the previous week.
According to Schieldrop, Massachusetts experienced weekly double-digit gains following Russia’s 2022 invasion of Ukraine. According to AAA, it reached the highest retail gas price ever recorded in the state in June, at $5.048 a gallon.
According to the Energy Information Administration, Russia produced more than 10 million barrels of oil per day and accounted for 11% of the global oil supply in 2023, behind Saudi Arabia and the United States. In contrast, Iran produced about 4 million barrels of oil per day and owned 4% of the world’s oil share.
The majority of that oil goes to China and other Southeast Asian nations, and while it’s a respectable quantity, it’s not enough to truly shift global markets, Schieldrop said. We are not at all reliant on Iranian oil.
Will holiday travel affect gas?
Between July 1 and July 7, the Transportation Security Administration anticipates screening over 18.5 million travelers. According to AAA, 61.6 million individuals will drive between June 28 and July 6, the most people ever expected to travel during that time.
Schieldrop stated that although prices usually rise gradually as midsummer draws near, he thinks there won’t be a significant increase because of the robust gas supply.
“Don’t panic if prices keep going up over the next few weeks,” he said. In general, I believe that as the holidays draw near, the majority of market analysts are expecting a slight price hike.
Due to their higher rates, Schieldrop advises Fourth of July travelers to stay away from petrol stations close to rest areas. Additionally, he advised drivers to think about their fuel efficiency because factors like tire pressure, vehicle upkeep, and adhering to speed limits can all impact how much gas a driver can use.
Numerous studies have demonstrated that driving aggressively and at high speeds doesn’t actually bring you to your destination any faster, according to Schieldrop. Simply by keeping cool while driving, even in hot conditions, you can also save money.
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