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Gas Prices Spike Hits Drivers Hardest in New Mexico, Arizona, Colorado

New York Times Business •
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Gas prices have surged dramatically across the United States, climbing nearly a dollar per gallon since the start of the Iran war. The average price jumped from $2.90 to $3.70 in just a month, marking the second-largest four-week increase in three decades. This surge eclipses the post-Ukraine war spike and the 2009 recession rebound, trailing only Hurricane Katrina's impact in 2005. New Mexico, Arizona, and Colorado saw the steepest hikes, with prices rising over a dollar in each state.

For the average driver covering 1,000 miles monthly, costs have increased by $16 to $47 depending on vehicle efficiency. Lower-income households face the greatest burden, spending a larger share of their income on fuel. Despite oil reserve releases, prices continue rising due to Persian Gulf supply disruptions through the Strait of Hormuz. While historically high, prices remain below 2008-2010 levels when adjusted for inflation, and modern cars are more efficient.

However, owners of older, less efficient vehicles will feel the pain repeatedly at the pump.