Have rising gas prices changed Rhode Islanders’ driving habits?
Rhode Islanders say spending more on gas has changed how much and where they drive, making mass transit more attractive.
From truck drivers to commuters, gas prices are straining budgets across the country. And the pump pain won’t go away anytime soon.
As peace negotiations between the United States and Iran appear to be at a dead end, the average price of a gallon of regular gasoline has risen to $4.18, the highest level in four years, according to AAA.
The last time Americans paid this much to fill up their tanks was after Russia invaded Ukraine.
Gasbuddy oil analyst Patrick de Haan had a grim prediction for Americans. The national average could rise to $4.20 a gallon on Tuesday and could soon reach $4.30 a gallon, he told USA TODAY.
problem? Oil prices have been steadily rising as peace negotiators hint that talks to reopen the Strait of Hormuz have stalled.
Brent crude, the international benchmark for oil, is up more than 40% since before the Iran war began in February.
Restrictions on tanker traffic through this narrow corridor are largely responsible for soaring oil prices and other economic impacts being felt around the world. On average, about 20% of oil once passed through the war-closed strait.
Investment bank Goldman Sachs said this week that oil could trade even higher. The bank’s commodity analysts raised their forecast for Brent crude oil prices in the fourth quarter to $90 from $80.
Brent crude oil prices soared 4% to over $105 a barrel, but fell to $104 a barrel after the United Arab Emirates announced it would leave OPEC next month.
And that ripple effect spreads through budgets across the country, especially in states with nosebleeding gas prices like California and Midwestern states beset by refinery problems.
Despite the impact of soaring energy prices, consumer confidence rose slightly in April. The Conference Board’s index of consumer confidence has edged up over the past two months, but remains near its lowest level since the coronavirus pandemic.
A new Gallup poll finds that Americans feel more financially strapped than at any point in the past 25 years. About 13% of respondents cited energy costs, up 10 points from last year and the highest since 2008. This was the second biggest concern, along with housing costs.
As Americans tighten their wallets to fill up on gas, businesses are experiencing burnout.
Even Domino’s Pizza is taking a hit as Americans are ordering less pizza. The pizza chain reported slower-than-expected sales growth this week.
Meanwhile, British oil giant BP’s first-quarter profits more than doubled.
Contributor: Andrea Riquier
