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Gas prices keep climbing, and Massachusetts may see some of the biggest hikes
Disruptions in the global oil supply are driving up prices, and New England’s fuel market leaves the state especially exposed.
Gas prices in Massachusetts have been climbing sharply as the war with Iran disrupts global oil markets, pushing up crude prices and squeezing drivers at the pump.
As a key shipping route for oil has effectively stalled, experts say this won’t be a short-lived jump, as local retailers are absorbing the uncertainty and higher oil costs.
“It’s a tough situation for folks who already are cutting it close or not able to make ends meet that easily or at all,” says Mark Schieldrop, senior spokesperson for AAA Northeast. “Now they’re seeing those dollars spin on the gas pump at a faster rate every time they have to fill up. It’s definitely a gut punch for folks that are trying to get ahead.”
Prices for regular gas in Massachusetts rose about 50 cents a gallon since the conflict began to an average of $3.40, according to data from the U.S. Energy Information Administration.
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Diesel has also shot up significantly. A week ago, it was $4.04 a gallon, and now it’s $4.83, according to AAA.
Heating oil also climbed about 20 cents a gallon between the week of Feb. 23 and the week of March 2, according to state data, as more cold weather is forecast.
With New England cut off from any major gas pipeline and without refineries of its own, the region may soon feel the hit harder than most.
Schieldrop said that most of the gas in the Northeast is imported, with some coming from other parts of the country. But, “we’re vulnerable to global market prices for oil and other refined products,” he said.
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In addition, the region’s service stations receive gas from tractor-trailers, all of which burn diesel. With diesel prices ticking toward $5 a gallon today, delivery costs will also go up, which will translate to the pump, Schieldrop said.
Those higher fuel costs will drive up the price of other goods, including food and home supplies, because trucks running on diesel deliver nearly everything to stores.
“That’s a huge concern,” said Schieldrop.
The last time Massachusetts saw a major spike in energy prices was in 2022, when Russia invaded Ukraine, shocking global oil markets, as Russia was the second-largest producer of oil and gas. AAA reported that regular gas reached a peak of $5.09, and diesel reached $6.41 a gallon.
Prices did eventually stabilize, but it remains unclear what will happen with the current conflict in Iran.
Even if peace is declared tomorrow, Schieldrop said it will have long-term reverberations in the market because refineries can’t “just flip a switch” and suddenly start pumping the same amount of oil.
A fifth of the world’s production goes through the Strait of Hormuz every day, Schieldrop said. With it effectively closed for over a week, the backlog of the 20 million barrels a day that flow through it will add up.
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“We’re not done yet, and things are probably going to get a little worse or significantly worse before we can start to see signs that things are going to get better,” Schieldrop said.
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