Higher gas prices have cost drivers an extra $8.4 billion, Democrats say

American drivers person paid an further $8.4 cardinal successful substance costs since the Iran war started, according to a caller estimation from the Joint Economic Committee's Democratic minority. 

The lawmakers' calculation is based connected regular mean gasoline prices arsenic tracked by AAA betwixt Feb. 28, erstwhile the U.S. and Israel attacked Iran, done March 31. The fig besides draws connected accusation from car researcher Edmunds connected the vessel sizes of top-selling state vehicles successful the U.S. and connected national substance depletion information from the Federal Highway Administration and Energy Information Administration.

The mean outgo of state crossed the U.S. rose to $4.06 a gallon connected Wednesday aft topping $4 the erstwhile time for the archetypal clip since 2022, according to AAA data.

Drivers of Toyota RAV4s present walk $58.26 to capable up their tanks, an summation of $15.02, oregon 35%, from earlier the war, the investigation finds. A Ford F-150 pickup motortruck costs $144.65 to capable up, an summation of $37.29, portion Toyota Camry sedan owners are spending $52.23 to capable their tank, oregon $13.46 much than earlier the struggle started past month.  

Despite higher state prices successful March, recognition paper information shows consumers are continuing to spend, suggesting households truthful acold are weathering the fiscal interaction of higher substance costs, according to Navy Federal Credit Union. 

But the Conference Board Consumer Confidence Index, released on March 31, shows less Americans are readying big-ticket purchases implicit the adjacent six months, a motion immoderate households could beryllium feeling the effects of higher substance costs.

"The strain is starting to show, particularly arsenic state hits $4 a gallon nationwide," said Heather Long, main economist astatine Navy Federal Credit Union, successful an email. "It's astir surely going to beryllium a muted 2nd 4th for spending and GDP maturation arsenic the worst of the ostentation daze hits consumers."

The Trump medication has said that the caller spike successful state prices is impermanent and that substance costs volition subside erstwhile the Iran warfare ends.

"When Operation Epic Fury is complete, state prices volition plummet backmost to the multi-year lows American drivers enjoyed earlier these short-term disruptions," White House spokeswoman Karoline Leavitt told CBS News successful an email connected Tuesday. 

A recent CBS News poll of  3,335 adults recovered that rising state prices are heightening concerns astir the U.S. economy. 

About one-third of Americans are making changes to their spending oregon savings habits to header with higher state prices, portion different 35% said they program to set their budgets if substance costs stay elevated, according to a caller LendingTree study. 

Texas and California residents person faced the sharpest summation successful state costs owed to their ample populations and fig of drivers. Texans person paid an further $1.04 cardinal successful substance costs since Feb. 28, portion Californians person paid an other $970 cardinal astatine the pump implicit the aforesaid time, the JEC Minority study estimates. 

Other states with important increases see Florida, with $684 cardinal successful other state costs, and North Carolina, with an other $361 cardinal successful spending, the investigation said.

Edited by Alain Sherter

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