Americans' spending on gasoline increased by $300 million compared to a month ago.

Author: Ines Ferré

The rapid rise in gasoline prices is beginning to impact consumers’ wallets.

According to AAA data, the national average gasoline price on Monday rose above $3.71 per gallon, up $0.25 from a week ago and $0.80 from over a month ago.

The increase in fuel costs is accumulating on drivers’ expenses.

Patrick DeHaan, head of oil analysis at GasBuddy, said on Sunday: “Today, Americans are spending $300 million more on gasoline than 30 days ago.”

Data from the U.S. Energy Information Administration (EIA) shows Americans consume about 375 million gallons of gasoline daily. For every 1-cent increase in gas prices, drivers’ daily spending increases by $3.75 million.

GasBuddy data indicates that, before adjusting for inflation, current oil prices are higher than 78% of trading days from January 2021 to January 2025.

Last week, analysts at RBC Capital Markets noted in a report: “As oil prices continue to rise, the budgets of low- and middle-income households will be disproportionately affected.”

Rising fuel prices could offset the full tax relief benefits from the Trump administration’s “Big and Beautiful Bill” (OBBBA).

RBC analysts wrote: “We previously confirmed that the bill would, to varying degrees, boost residents’ purchasing power. But now, soaring energy prices could almost completely offset this positive effect.”

As conflicts between the U.S., Israel, and Iran enter their third week, shipping through the critical Strait of Hormuz has nearly halted, causing sharp increases in gasoline and diesel prices.

Unless there is a substantial recovery in oil transportation, upward pressure on fuel prices is likely to persist.

DeHaan from GasBuddy said: “Meanwhile, seasonal factors are intensifying, as multiple regions are switching to summer gasoline formulations, creating double pressure that could continue to push retail prices higher in the coming weeks.”

Since the outbreak of conflict on February 28, international oil prices have risen by over 33%.

Last Friday evening, the U.S. military attacked Iranian military targets on Khark Island — an island about one-third the size of Manhattan and a major Iranian crude oil export hub. President Trump warned that if Iran continues to block shipping, Iranian energy facilities will be targeted.

Strategists say the longer the conflict lasts, the greater the potential for oil prices to rise.

RBC Capital Markets estimates:

• If the conflict continues for another 3 to 4 weeks, oil prices could break through the $128 per barrel high set after the Russia-Ukraine conflict;
• If the war lasts several months, prices could exceed the historic peak of $146 per barrel in 2008.