Iran war: How high could oil prices go?
The escalating war between Israel, the US and Iran is driving up oil and gas prices and causing widespread disruption to global energy markets.
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- Gas prices are rising in northeastern Wisconsin but remain below the national average.
- The increase is linked to seasonal fuel changes and rising oil prices due to conflict in the Middle East.
- An expert predicts the national average could rise another 15-30 cents before prices level out.
Gasoline prices will continue to increase across the Green Bay, Appleton and Oshkosh areas, but northeastern Wisconsin consumers continue to pay less than the national average.
National and local gas prices began to increase in late February as refineries began to transition to summer fuel blends. Gas prices increased sharply at the start of March after the United States and Israel launched attacks on Iran and the conflict spread through the Middle East.
Wisconsin’s average gas prices rose from $2.57 on Feb. 23 to $2.77 on March 2 to $2.86 on March 3, according to AAA Wisconsin. GasBuddy’s real time price tracker reported the statewide average rose above $2.90 by 4 p.m. March 3. In the Fox Cities, the price for a gallon of regular gas went from $2.46 on Feb. 23 to $2.76 March 2 to $2.82 on March 3, according to AAA.
Oil, the biggest contributor to gasoline prices, has risen in price from below $67 per barrel on Feb. 27 to almost $75 on March 3. The current unrest in the Middle East will likely continue to push gas, diesel and jet fuel prices up across the United States, said Patrick De Haan, Gas Buddy’s head of petroleum analysis.
“Now that it has really escalated, oil prices are jumping and that’s leading consumers to see higher gas prices, higher diesel prices, higher jet fuel prices,” De Haan said in a March 3 PDI Technologies briefing.
Here’s a look a current gas prices in the region, historic highs, historic lows and what’s likely to happen with fuel prices in the coming days and weeks.
What costs go into the price for a gallon of gasoline?
Here’s the breakdown of what consumers pay for in the price of a gallon of gasoline, according to the U.S. Energy Information Administration:
- Taxes: 17%
- Distribution and marketing: 20%
- Refining: 16%
- Crude oil: 47%
What are the current average gas prices in the Appleton area?
According to AAA as of March 3, here are the average fuel prices in the Fox Cities:
- Regular: $2.82
- Premium: $3.91
- Diesel: $3.58
What are the current average gas prices in the Oshkosh area?
According to AAA as of March 3, here are the average fuel prices in the Oshkosh area:
- Regular: $2.84
- Premium: $3.92
- Diesel: $3.60
What will happen to gas prices near me in Appleton and Oshkosh?
First, it’s important to note De Haan can’t predict the future and acknowledged his projections could change if conditions change in the Middle East, especially with ship activity through the Strait of Hormuz, a key shipping route for 20% of the world’s seaborn oil.
“Nobody has a crystal ball. … There’s so much uncertainty,” he said.
De Haan said he expects the national average gasoline price, which rose 15 cents in recent days to $3.11, may go up another 15-30 cents over the next week or two. The national average price of diesel fuel, currently $3.89, could increase another 40-75 cents in the coming weeks, he said.
He said consumers should see prices level out.
“The pace of increases, while it’s a bit dramatic right now, should settle down in the next week or week-and-a-half,” De Haan said.
What’s the highest ever national average gas price?
$5.01 on June 14, 2022, according to AAA.
$5.03 on June 16, 2022, according to GasBuddy.
What’s the lowest ever national average gas price?
$1.59 on Dec. 29, 2008, per GasBuddy.
What was the highest ever average gas price in Appleton?
$4.78 on June 14, 2022, per AAA.
What was the highest ever average gas price in Oshkosh?
$4.80 on June 9, 2022, per AAA.
Contact business reporter Jeff Bollier at (920) 431-8387 or [email protected]. Follow him on X at @JeffBollier.
