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Gas prices in the Capital Region have surged dramatically, causing concern among local drivers. According to NEWS10 ABC, the average cost for a gallon of regular fuel has risen by 31 cents in the past week, reaching $3.64. This marks a 66-cent increase compared to a month ago. The state average is currently $3.60 per gallon, while the national average stands at $3.70.
The recent spike in prices is attributed to geopolitical tensions, particularly the U.S. strikes on Iran and the subsequent closure of the Strait of Hormuz. Kajal Lahiri, an economics professor at the University at Albany, explained that the uncertainty surrounding the conflict has disrupted global crude oil supply, driving prices up. As a result, gasoline prices in many states could climb another 20 to 50 cents per gallon in the coming days.
Patrick De Haan, Head of Petroleum Analysis at GasBuddy, noted that oil prices have surpassed $100 per barrel for the first time in years due to the ongoing conflict. He warned that markets are rapidly adjusting to the risk of prolonged supply disruptions. AAA reports that the national average gas price has increased by over 51 cents per gallon, reaching $3.45.
The impact of these rising prices is felt deeply by consumers. Tara Ricard, AAA Hudson Valley's marketing manager, highlighted that the conflict's uncertainty means gas prices will continue to escalate if the situation persists. President Donald Trump has addressed the issue, expressing optimism that prices will drop once the conflict ends. However, the future of gas prices remains uncertain, dependent on developments in the Middle East.