The US Energy Information Administration has warned that petrol and diesel prices will remain elevated until mid-2027, with petrol not falling below $2.94 per gallon and diesel staying above $3.81 until next year. The Middle East conflict has pushed petrol prices up 19% to $3.50 per gallon and diesel up 28% to $4.86 per gallon over the past two weeks.

These price increases threaten to drive up costs across American industries, from trucking and farming to airlines and retailers. West Texas Intermediate crude surged to nearly $120 per barrel before settling at $83.45, while jet fuel rose 60% to $3.95 per gallon. The trucking industry, which uses over 1 million gallons annually, relies on fuel surcharges to offset costs, while farmers face higher expenses for planting crops.

The impact extends to utilities and retail. American Electric Power expects to spend an extra $1 million for every 10-cent increase in fuel costs, using 10 million gallons annually. Retailers with rural stores anticipate reduced consumer spending as fuel costs squeeze disposable income. Analysts warn that lower-income households will be hit hardest, spending a disproportionate share of their budgets on fuel.