CNN: US gasoline prices hit new high, fueling economic anxiety

The average price for a gallon of regular gasoline rose another 5 cents in US, reaching $3.84—a level not seen since September 25, 2023.

Gas now averages $4 or more in seven states, with prices exceeding $5 per gallon in California, Hawaii, and Washington, CNN reports.

The nationwide average has climbed 86 cents in just 18 days, representing a 29% increase—one of the fastest surges on record. On a percentage basis, the spike rivals the gas price shock during Hurricane Katrina in the summer of 2005, when the storm hit the Gulf Coast and disrupted US oil refining operations.

Spiking fuel prices could strain household budgets, reduce consumer spending, and weigh on the broader economy if sustained. “If gas prices remain at roughly this level throughout the year, it would add $100 billion in total cumulative additional costs to the economy,” said Gus Faucher, chief economist at The PNC Financial Services Group.

By Vafa Guliyeva