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US Drivers Cut Back on Petrol as Iran War Prices Surge

Financial Times Markets •
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US drivers cut back at the pump as Iran war pushes petrol prices 28% higher, averaging $4 per gallon nationwide. Northeastern stations saw sales fall 4.3% in March versus 0.6% growth last year, with consumers adjusting habits by filling up less, carpooling, and avoiding unnecessary drives. The price surge has triggered "demand destruction" signs across regions.

Rocky Mountain sales slipped 0.3% versus 3% growth a year earlier, while premium fuel purchases dropped 7%. Fuel transactions rose 10.7%, but volume only increased 2.2%, indicating smaller, more frequent purchases rather than full tank fills. Drivers unable to cut back are buying cheaper fuel grades and putting less in their tanks to stretch budgets.

Fuel savings and carpooling apps report explosive growth, with Gasbuddy downloads surging 453% since the crisis began. Americans face pressure from the wider cost-of-living crisis, with some taking extra jobs or selling plasma to afford petrol. The rising prices could impact President Trump politically, as voters often attribute petrol prices to whoever is in office.