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In early January, the average price of gas in North Carolina dipped to $2.62 per gallon, the lowest it had been in several years. The price bounced around a bit in January and February, rising about 12 cents a gallon by March 1.
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Then the U.S. and Israel launched their attack on Iran, starting a conflict that closed the Strait of Hormuz in the Persian Gulf, through which 20% of the world’s oil supply used to pass. Within a week, gas prices rose 50 cents on their way to more than $4 a gallon on average by the end of April.
It was the second time since early 2022 that war in a distant part of the world caused fuel prices in North Carolina to suddenly soar. The News & Observer began tracking the daily prices of regular unleaded and diesel in February 2022, just before Russia invaded Ukraine, using data compiled by AAA. The shock to the world oil markets after the Russian invasion sent gas prices in North Carolina to nearly $4.70 a gallon by early that summer.
Prices have yet to reach that high during the current conflict; the statewide average peaked at $4.24 a gallon in May before subsiding over the summer.
But continued dangers in the Persian Gulf coupled with attacks on a Saudi pipeline carrying oil to the Red Sea to avoid the Strait of Hormuz caused oil prices to spike again, and along with it fuel prices in North Carolina. Friday’s average of $4.16 a gallon was 46 cents higher than a month earlier.
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Diesel prices have risen more sharply, reaching a record high average of $6.23 a gallon in North Carolina on Friday. Diesel is now 85% more expensive than it was at the start of the year.
Diesel supplies are especially tight worldwide because refineries are producing less in Russia, China and the Middle East, according to the U.S. Energy Information Administration. That’s driven up prices of imported diesel as well as demand for the fuel the U.S. exports, according to the agency.
Recent Ukrainian attacks on refineries in Russia aren’t helping, said Patrick De Haan, head of petroleum analysis at GasBuddy.com.
“Diesel prices could climb even faster in the wake of the new refinery attacks,” De Haan wrote this week. “While most of the country transitions to cheaper winter-blend gasoline this week, the scale of ongoing geopolitical escalations makes meaningful price relief unlikely in the near term. Motorists should brace for continued volatility ahead.”
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