With uncertainty around the conflict with Iran, a North Carolina State University economist fears the price of gas could remain inflated for years to come.
According to AAA, the national average for gas jumped 27 cents in one week and is $1.12 higher than it was this time last year. Gas is averaging $4.05 per gallon in North Carolina and $4.39 per gallon nationally. That’s up from last month’s average of $3.90 per gallon in North Carolina and $4.06 per gallon nationally and last year’s average of $2.93 per gallon in state and $3.18 per gallon nationally.
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And there’s no end in sight.
“Unfortunately, it’s bad news,” Rob Handfield, an NC State professor of Supply Chain Management said.
According to a survey done by the Federal Reserve Bank of Dallas, 40% of respondents felt we are seven or more months away from returning to pre-war gas prices. But Handfield fears, it could be even longer.
“There’s a possibility this could actually last longer than 2026,” he said. “The fact is, a lot of the oil infrastructure was damaged during the war and it takes a long time to rebuild these facilities. We could be three to five years where we see oil shortages therefore, gas prices remain high.”
But it’s not just filling up your car with regular. You have to keep your eye on diesel prices as well, as they near record highs.
The record high for a gallon of diesel fuel was set in June 2022 at $5.81 per gallon nationally. Right now, it’s $5.57 per gallon.
“Diesel is hit harder which is really hard for farmers, transportation providers,” Handfield said. “The consumer ultimately pays for it because of the transportation surcharges, fuel surcharges and all the trucks in this country use diesel fuel to operate.
“They’re going to pass on those increased costs in the form of higher prices for groceries, sundry goods and everything else.”
Related: Simple changes drivers can make to save more money on gas
The WRAL Fuel Tracker and other apps like GasBuddy can help drivers compared the price of gas at stations nearby.