Gasoline prices in Greater Worcester have spiked nearly 23% in the two weeks since the start of the U.S. and Israeli war with Iran.
The average price of regular unleaded gasoline in Greater Worcester sat at $3.55 per gallon on Monday, a 7% increase from March 9 and a 22.87% jump from the $2.89 price on March 2, according to data released by travel association AAA Northeast.
Diesel prices in the area experienced a greater surge in the last week, with its average cost rising 8.74% to $5.18 per gallon. Monday’s price marked a 31.35% increase since March 2.
“While lifting sanctions and releasing oil from strategic reserves might address some immediate supply shortages around the globe, many market participants view those moves as signs for concern,” Mark Schieldrop, senior spokesperson for AAA Northeast, said in the release.
Greater Worcester’s average regular gas price was the same as the state’s overall average and 16 cents below the nation’s average of $3.71.
Since the start of the war with Iran, the prices have spiked on a barrel of oil, which is a main contributor in the price of gasoline. On Monday afternoon, the price was $94.43 per barrel, a 33% increase since March 2, according to figures compiled by Business Insider.
Monday’s figures come after the International Energy Agency approved the release of 400 million barrels of emergency crude oil on Thursday, the greatest drawdown of government oil reserves in the agency’s history, according to Al Jazeera. The IEA is composed of representatives of 32 countries.
AAA Northeast warned the potential price cooling effects of this release are limited.
“While the 400 million barrels released by the IEA might sound like a large number, it represents just 20 days of pre-conflict output from the Strait of Hormuz,” said Schieldrop.
Mica Kanner-Mascolo is a staff writer at Worcester Business Journal, who primarily covers the healthcare, manufacturing, and higher education industries.
