ROCHESTER, N.Y. — The ongoing tensions in the Middle East have caused a significant increase in oil prices, affecting consumers worldwide.
Iran has threatened to target any tanker that dares to enter the Strait of Hormuz, where 20% of the world’s oil travels through. This has led to a dramatic rise in oil prices.
The national average price for a gallon of gas is now $3.55. In Rochester, the price is $3.47, which is 47 cents higher than last Tuesday. This spike is not limited to gasoline, as prices for petroleum products like fertilizer and jet fuel are also increasing.
“I think in the long run we’re all going to have to adapt right. That’s the nature of us all being interconnected,” one person at Costco said.
A visit to Costco revealed that the price of gas has risen significantly in just one week. Last Tuesday, gas was $2.72 a gallon. This Tuesday, it jumped to $3.24, marking a 52-cent increase.
“The price of diesel now nationally is averaging $4.75 a gallon. That is up a dollar a gallon from eight days ago,” said Patrick De Haan of GasBuddy.
Diesel plays a crucial role in the economy, with almost 70% of all domestic goods transported by truck in 2024, according to the U.S. Department of Transportation.
“There’s a profound trickle down Americans are about to see. Your deliveries are about to get more expensive. You may have to pay the cost of that. You may have to pay the cost of rising grocery prices,” said De Haan.
More than 80% of food in grocery stores is delivered by truck, contributing to rising costs. However, there was a bit of good news on Tuesday as oil prices fell by 10%.
“Oil prices are now down 10 percent today so the good news is the increases will likely stick to that plan,” said De Haan.
Although this does not mean an immediate drop in oil prices, De Haan said he thinks prices will stabilize. Currently, the average price in Rochester is cheaper than the national average because the Northeast has not yet transitioned to the more expensive summer blend.
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